Today's support and resistance levels:
R3: 147.39
R2: 147.05
R1: 146.88
Current spot: 146.73
S1: 146.52
S2: 146.29
S3: 146.02
Technical summary:
The rally in wave (i) to 149.13 became a bit unusual as the rally ended at 149.13, where it was 423.6% the distance traveled in wave i added to the top of wave i. Looking at the upper chart, we can see that these former resistance points now act as both support and resistance as the correction from 149.13 is unfolding. The decline from 149.13 was halted at the 300% extension target for a minor rally to the 361.8% extension target before turning lower again. We will now be looking for the next part the decline from 149.13 lower to 144.58 before the next minor rally. In the short term, we expect minor resistance at 146.85 to protect the upside for the next decline towards 144.58.
Trading recommendation:
We sold EUR at 146.90 and will move our stop lower to 147.50 and place take profit at 144.75. If you are not short in EUR yet, then sell near 146.85 with the same stop and take profit levels.
