Today's support and resistance levels:
R3: 130.28 (important resistance - can be broken at any moment)
R2: 129.81
R1: 129.64
Current spot: 129.29
S1: 129.16
S2: 128.84
S3: 128.37
Technical ovreview:
We are likely to be just on the edge of a powerful decline towards 127.82 and 126.87 as the next targets lower. That said, we are only in the very early parts of wave c lower and this wave c should at least reach strong support at 124.96. However, if we break below the strong support at 124.96, we will see a much deeper decline to our ideal target for this correction at 118.73. In short term we should expect minor resistance at 129.64 to protect the upside for a break below 129.16 and more important break below 128.97, which will confirm that the expected powerful decline is underway.
Trading recommendation:
We are short EUR from 130.25 and will keep our stop at 131.25, but once support at 128.97 breaks we will move our stop lower to break-even. If you are not short EUR yet, then sell a break below 129.16 with the same stop at 131.25.
