Today's Support and Resistance Levels:
S1: 100.35 R1: 100.93
S2: 100.13 R2: 101.43
S3: 99.83 R3: 102.10
Technical Overview:
The risk scenario described yesterday is taking place. We should expect a decline to the 38.2% correction target of black wave 3 near 100.13 before the correction from 103.85 finally finds its bottom. Even though this correction has been deeper than we first expected, we still expect it to be of an even more complex nature, in comparison with that we have seen until now.
Once we reached 100.13, we should expect a rally higher towards 102.10 and a break here will confirm a continuation of movement higher towards the top at 103.85. In the short term, we should expect continued downside pressure as long as resistance at 101.28 protects the upside, but any break above 101.28 will indicate an easing in the downside pressure and call for a move higher towards important resistance at 102.10.
Trading Recommendation:
We will buy EUR at 100.20 or upon a break above 101.28 (one order done cancels the other). We will place stop at 99.45.
