Today's Support and Resistance levels:
R3: 131.68
R2: 131.28
R1: 130,98
Current Spot: 130.84
S1: 130.64
S2: 130.28
S3: 129.97
Technical overview:
Since my last update on May 24, we have seen a sideways consolidation in what seems to be a b-wave triangle. That of course means that the road-map I put has to be slightly corrected, but the overall outcome will be the same. We are still looking for an immediately breakdown if forms of a break below 130.19, which will call for a decline towards at least 128.25 and, more likely, a continuation down to 125.87. As the road-map has been changed we will have to accept the possibility of a much more complex correction unfolding from the 133.81 high, but only time will show.
Trading recommendation:
The stop proposed at 132.90 has protected our short position from 131.92 nicely and we still recommend to be short and lower stop to 132.25. If you are not short EUR already, then sell EUR near 131.25 or upon a break below 130.64 with the same stop.
