Today's support and resistance levels:
R3: 138.07
R2: 137.87
R1: 137.64
Current spot: 137.45
S1: 137.40
S2: 137.30
S3: 137.19
Technical summary:
We did see a continuation lower to the 78.6% corrective target at 136.96 (the low came in at 136.87), this decline was followed by a strong rally above 137.75 to 137.87 and we could have seen a bottom, but we ideally support at 137.30 and more importantly support at 137.87 needs to protect the downside for a break above 137.87, which will confirm the bottom for a continuation higher towards 139.13 and 141.22 on the way towards 143.79. The risk is a break below 136.87, that would call for another zig-zag decline closer to the 135.80 bottom.
Trading recommendation:
We are long EUR at 137.75 and will place stop at 136.85.
