Today's Support and Resistance levels:
R3: 134.00
R2: 133.49
R1: 132.97
Current Spot: 132.87
S1: 132.52
S2: 132.13
S3: 131.89
Technical summary:
The decline from 133.49 became much deeper than expected and has forced a recount of the short-term picture. The bigger picture is still intact for a new impulsive wave higher towards 134.00 and 134.95 as the first target towards 137.45.
In the short term we are looking for a break above 133.48 as indication that a new impulsive wave higher has begun, and a break above 134.00 will confirm that wave iii is developing for continuation higher towards 134.95 and 137.45 in the longer term.
The risk is a failure to break above 133.48 followed by a break below 132.13, as that would call for a decline towards a new low near 130.96. This is not the preferred outcome, but we will have to stay flexible.
Trading recommendation:
The stop at 131.60 was hit and we are looking for a new buying opportunity. Buy EUR at 132.65 or upon a break above 133.48 (One Cancels the Other) with a stop at 131.40.