Today's support and resistance levels:
R3: 131.31
R2: 131.12
R1: 130.70
Current spot: 130.36
S1: 130.28
S2: 130.08
S3: 129.85
Technical overview:
With the break above resistance at 130.56, we now must expect a much more complex correction developing. We should now be looking for a move higher towards the top at 133.81. This expected move higher will not be easy to break down, but we will take it step by step. We now expect support in the 130.00 - 130.10 range to protect the downside for the next rally higher towards 131.31 and a break above here will add confidence in a continuation higher towards strong resistance at 133.81. That said, it will take a break below 130.00 to question the rally higher, but only a break below 128.90 will invalidate this call.
Trading recommendation:
Our stop+reversal at 130.60 was hit for a small loss and we now long EUR. We will place our stop at 128.85 expecting to be able to raise it soon.
