Today's support and resistance levels:
S1: 129.78 R1: 130.17
S2: 129.51 R2: 130.68
S3: 129.17 R3: 131.12
Technical overview:
Once wave e of the triangle was over, we saw a very powerful rally towards the upside, just as expected. This will be the final thrust to the upside, which will terminate the entire rally from 94.10 and will be followed by a correction in wave (ii). However, let us focus on where this rally is headed to. In the short term, we expect support at 129.51 to protect the downside for the next rally higher. A rally will likely take us higher to at least 132.41 and possibly even higher to 134.17 in wave iii of 5. The ideal target for wave 5 is at 135.42.
Trading recommendation:
We long EUR from 127.30 and will move our stop higher to 128.35 and we will place our take profit and the position reversal at 135.00. If you already have long EUR positions, then buy near 129.51 with the same stop and take profit.
