Today's Support and Resistance levels:
R3: 139.55
R2: 139.15
R1: 138.89
Current spot: 138.80
S1: 138.45
S2: 138.09
S3: 137.59
Technical summary:
The failure to break lower has forced a short-term recount. We knew that the decline from 145.69 was a correction, but we was looking for a five wave decline as wave A, this is still a possibility, but for this count to stay valid resistance at 139.15 has to protect the upside for a break below 138.45 and more importantly a break below 137.54 that confirm the above count for a decline towards 134.87. If however, resistance at 139.15 is broken, then our alternate count (see below) becomes the preferred count. This count shows that wave A already is in place in what will be a major flat correction, but more about this count if resistance at 139.15 is broken.
Trading recommendation:
Our stop at 138.30 was hit for a nice big profit. We will re-sell EUR here at 138.80 with a close stop at 139.20.
