Today's Support and Resistance Levels:
Support Resistance
1: 96.72 1: 97.07
2: 96.36 2: 97.85
3: 95.65 3: 98.13
Technical Overview:
We have now entered the target-zone between the levels of 95.75 - 96.75 for blue wave v with the test of 96.40. As long as minor resistance at 97.07 protects the upside, I will be looking for one last decline towards 96.11 to end the blue wave v and the black wave iii. Once the black wave iii is finally in place, we should see a shallow but complex wave iv towards the 98.00 - 98.13 area before the fifth and final decline take us down to the almost ideal target at 94.58.
Trading Recommendations:
The short EUR and long JPY position from 99.55 was closed yesterday at the take-profit level at 96.50. Even though corrections should be handled with the utmost care, especially fourth waves, we recommend buying EUR and selling JPY at 96.20 or upon a break above 97.07 (buy at 97.10) where one cancels the other with a 95.65 stop and take profit at 98.00
