Today's Support and Resistance levels:
R3: 131.17
R2: 130.79
R1: 130.45
Current Spot: 130.40
S1: 130.18
S2: 129.95
S3: 129.76
Technical summary:
We saw the end of minor wave five at exactly 129.59, which was our first target. The rally of the low at 129.59 indicates, that wave i of c is over and wave ii is developing. It is most likely that this wave ii will retrace a great part of wave i, so we would expect to see a correction of 61.8% of wave i, which will take us to 131.54 before wave ii might be over. However, as second waves are allowed to correct all of wave the first wave we could see a move closer to the 132.74 top, but under no circumstances can a break above the start of wave i at 132.74 be allowed. Once this ongoing wave ii is done we will be looking after a powerful decline in wave iii, but first we will concentrate on wave ii higher.
Trading recommendation:
Our stop at 130.45 is still intact, but it should just be a matter of time before it is taken out, therefore we will take profit here at 130.40 for a small profit. We will be looking for a new EUR-selling opportunity and will place a EUR sell-order at 131.50 and place a stop order at 132.80 if done.
