Today's Support and Resistance Levels:
S1: 100.35 R1: 101.41
S2: 99.48 R2: 102.10
S3: 99.48 R3: 102.55
Technical Overview:
We saw the test of resistance at 101.05, but unfortunately any breakthrough has not been seen yet. That said we think it will only be a matter of hours before resistance at 101.05 is defeated, and the new impulsive rally from 99.63 gathers momentum for a move higher towards 102.10 and 103.85 in wave 5.
The first target for this wave 5 is at 104.57 and the second is at 105.69.
Having set a second target at 105.69 does not mean that the rally starting with 94.10 cannot move even higher, but a move higher than 105.69 would mean that wave 5 will extend as well. However, it happens rarely.
In the short term, we should ideally see support at 100.40 protecting the downside, but even if it breaks it will not destroy our bullish scenario. Only a break below support at 99.78 will do that and call for a deeper decline towards 99.48.
Trading Recommendation:
You should be long EUR from 100.20 with a 99.60 stop. If you are not long EUR already you should buy at 100.45 or upon a break above 101.20 with the same stop.
