Today's Support and Resistance Levels:
S1: 102.80 R1: 103.29
S2: 102.51 R2: 103.67
S3: 101.85 R3: 104.03
Technical Overview:
We saw a new low at 102.52 yesterday. It seems likely that the new low marks the bottom of red wave i and we should be close to the end of red wave ii in case it has not already ended with the test of 103.26. A break below support at 102.80 will indicate that red wave ii has finished at 103.26 and called for a new test of 102.52 towards the next support near 101.45. The 101.45 support will likely prove to be rather strong, but none the less it should not hold; a continuation down to 100.19 will likely be the outcome if 101.45 breaks.
Until the break below 102.80 materializes, we could see the ongoing correction a little higher towards 103.67, but it does not change anything in the whole picture. Only a break above 104.42 will change the larger picture and call for a new high above 104.59.
Trading Recommendation:
You should be short EUR from 104.50 with a stop at break-even. If you are not short EUR already sell at 103.20 or a break below 102.80 (one order done cancels the other) with the same stop.
