Today's Support and Resistance Levels:
S1: 103.52 R1: 104.04
S2: 102.98 R2: 104.42
S3: 102.34 R3: 104.59
Technical Overview:
The c-leg of the expanded flat correction became slightly bigger than expected. However, it does not change anything in the larger structure. With a high at 104.42 wave c became 2.618 times longer than wave a. It is an unusual large c-wave, but it did not break above the peak of wave 5 at 104.59. If it had broken above, then that would have changed the count, but as we did not observe the count we presented yesterday it is still our preferred count. In the short term, a break below 103.52 and more importantly 103.28 will confirm wave iii down. We said yesterday that after an expanded flat correction we would normally see an extended wave. We also expect wave iii to be extended and at least reach 1.618 times wave i, which would target 102.27, but we would not be surprised to see wave iii extend even more towards the 200% of wave i, which would target 101.75. It would also be very near the support-line back from the low at 94.10.
Trading Recommendation:
You should be short EUR from 104.50 with 104.65 stop. If you are not short already sell a break below 103.52 with the same stop.
