Today's Support and Resistance Levels:
S1: 101.21 R1: 101.72
S2: 100.59 R2: 101.89
S3: 100.15 R3: 102.08
Technical Overview:
Our triangle scenario is working well. We saw the expected move higher yesterday, as wave D of the triangle is developing. In the short term we are looking for a minor correction down to 101.10 before the next move higher towards the 101.89 - 102.08 area starts. We are expecting wave D ends before the final E wave of the triangle takes us down to 101.10 and maybe even 100.89 to set the stage for the next impulsive rally higher.
The waves within a triangle tend to alternate with each other. That is why we expect only a relatively small move higher once the ongoing weak reaction is finished near 101.10.
Trading Recommendation:
You should be long EUR from 100.25 and you should lift your stop to break even at 100.25. Take profit at 101.85.
