Today's Support and Resistance levels:
R3: 134.71
R2: 134.00
R1: 133.58
Current Spot: 133.19
S1: 132.88
S2: 132.68
S3: 132.27
Technical Summary:
As we broke back below the neckline of the inverted S/H/S bottom, that was, of couse, invalidated and caused a deeper decline. However, the short-term count with the highest odds shows a possible new and even bigger inverted S/H/S bottom building (see the 15-minute chart below). To trigger this bottom, we need a break above 133.58 and more importantly a break above 134.00, which will call for a rally higher towards 135.32 on the way higher to 137.45.
The risk to the above scenario is a break below 132.88, that will shift the odds towards the expanding leading diagonal we mentioned a few days ago. If this count becomes the preferred count we are only in wave ii and should see a deeper correction towards 132.11 and, maybe, even lower towards 131.43, before wave ii is over.
Trading recommendation:
Stay long in EUR from 133.60 with stop at 132.85. If you are not long in EUR yet, then buy upon a break above 133.58 with the same stop at 132.85.
