Today's Support and Resistance Levels:
S1: 103.14 R1: 103.78
S2: 102.89 R2: 104.10
S3: 102.37 R3: 104.59
Technical Overview:
The decline from the high of 104.59 was observed on Friday. It is clearly impulsive in nature. That said, we still need to break below important support at 103.14 to confirm that the 104.59 high was indeed the top. In the short term we expect minor resistance at 103.82 will protect the upside for a break below 103.51, which will confirm the test of important support at 103.14. This first test might fail, but the next test should break below this support and confirm the 104.59 top.
In the long term we are looking for the largest correction since the 94.10 low, which means a correction of at least 422 pips and then it should take more than a month to develop. The ideal target for this correction will likely be near the 50% corrective target for the rally from 94.10 to 104.59, which comes in at 99.35.
Trading Recommendation:
You should be short EUR from 104.50 with a 105.50 stop. If you are not short EUR already you should sell a break below 103.15 with the same stop.
