Today's Support and Resistance levels:
R3: 130.99
R2: 130.59
R1: 130.08
Current Spot: 129.92
S1: 129.59
S2: 129.27
S3: 128.96
Technical overview:
With the break below important support we had the final confirmation we needed, that wave b did finish at 132.74 and wave c lower now is developing. Wave c is an impulsive, that means wave c can be broken down in five smaller waves. Three in the direction of the trend, which is down, and two waves against the trend, which would mean towards the upside in this case. We are currently about to end of the first impulsive wave down from 132.74. The first target for this wave i is at 129.59 followed by 129.27 and 128.96. We believe the most likely target is near 129.27, but only time will tell. Once this minor wave i of c is over we should expect a correction towards 130.99 in wave ii before the next impulsive decline lower.
Trading recommendation:
We sold EUR at 130.75 and will lower our stop to 130.45 and take profit at 129.35. If one of these orders get done we will place a new EUR selling order at 130.90.
