Today's Support and Resistance Levels:
S1: 102.40 R1: 102.89
S2: 102.18 R2: 103.21
S3: 101.67 R3: 103.85
Technical Overview:
We are looking for a shallow but complex correction in black wave 4. Ideally, this correction will not break below the mid-line of the base channel, which at this point is located at 100.61, but even if it does break, it will not do any serious damage to the overall impulsive wave count from 94.09. A break below the base channel mid-line will open for a slightly deeper correction towards 100.16 but let's try to track the correction as it unfolds.
As we said yesterday, we expect this black wave four to be complex by nature and therefore, it is best to left it alone while it is unfolding because anything can happen during the correction. The only guide line we have is that we should expect a shallow but complex correction, because black wave two was a simple but deep zig-zag correction, and due to R.N. Elliott alternation principle wave 2 and 4 should be of different character.
Trading Recommendation:
We will trade this correction with the utmost care as anything can happen. We will try to place a EUR sell order at 103.35 with a 103.90 stop and take profit at 100.75
