Today's Support and Resistance Levels:
S1: 99.70 R1: 100.16
S2: 99.48 R2: 100.46
S3: 98.98 R3: 101.05
Technical Overview:
The decline from 103.85 has probably developed a falling wedge which normally will be followed by a powerful move in the opposite direction once it is finished and that should not be too long. However, to indicate that the correction from 103.85 has ended, we need a break above 100.46 and more importantly 101.05. A break above will confirm a bottom and call for a return to the top at 103.85. Yesterday I said that the this correction had fulfilled its price target, but not yet its time target, but we are getting close to it and I am more inclined to see the correction from 103.85 to 99.70 as wave 4 now. However, we need a break above 100.46 to ease the downside pressure. As long as minor resistance at 100.46 protects the upside, the risk is to the downside for a move closer to 99.48 and maybe even 98.98, but it will be somewhat unexpected.
Trading Recommendation:
You should be long EUR from 100.20 with a 99.48 stop. If you are not long EUR already, wait for a break above 100.46 before buying with the same stop.
