Today's Support and Resistance Levels:
Support Resistance
1: 96.75 1: 97.85
2: 96.35 2: 98.05
3: 95.65 3: 99.69
Technical Overview:
We can now foresee a clear five wave decline from 100.82. This five wave decline is best counted as black wave iii, which means that we should see a correction in black wave iv once black wave iii finds its final bottom. This bottom is expected to be found in the 95.75 - 96.75 area. The coming black wave iv is expected to be a shallow but complex correction due to Elliott's Alternation principle. This principle states that wave two and four should be of different shape and complexity. Here black wave ii was a sharp and simple zigzag, which then calls for a shallow but complex wave iv. As we only have three different types of corrections, which are Zigzags, Flats and Triangles, then black wave four should be either a flat or a triangle correction.
Trading Recommendations:
You should be short EUR against JPY from 99.55. Move your stop down from 98.15 to 97.90 and keep your take-profit at 96.50, booking a nice profit no matter which level is hit first.
