Today's Support and Resistance Levels:
S1: 101.47 R1: 102.29
S2: 100.97 R2: 102.80
S3: 100.61 R3: 103.63
Technical Overview:
A slightly higher high was needed to finish wave D of the triangle. Now we should see the development of wave E to the downside. Wave E is notorious as it is difficult to predict its move. It can be very small and correct only 23.6% of wave D - on the contrary, it can correct almost 100% of wave D. Normally it tends to correct between 50 - 61.8% of wave D, which in this case would mean a correction towards the 100.97 - 101.22 area, here the next impulsive rally will take of. As there are no any hard and fast guidelines for wave E, it will be either a zigzag correction or even a triangle itself. We have to wait and see the way it develops. The only thing we can say with certainty is that once wave E is finished we will see the final impulsive move in direction of the underlying trend, which is up and should take us at least to 104.72.
Trading Recommendation:
We will buy EUR at 101.30 or upon a break above 102.80.
