Today's Support and Resistance Levels:
S1: 106.36 R1: 106.78
S2: 106.10 R2: 107.10
S3: 105.71 R3: 107.70
Technical Overview:
We have seen a slightly deeper decline than we first anticipated, but it does not change the bigger picture, which calls for a new rally soon. A break above minor resistance at 106.78 will be the first indication that the next rally higher is on its way towards 107.10 and 107.70 as the next minor targets. However, in the long term we are looking for much higher levels, with the first major target 110.76. But as we are in wave 3 we could very well see an extended rally, which will take us even higher towards 117.25, but time will tell.
In the short term there still is a risk of one more decline to just below 106.08 as long as resistance at 106.78 stays intact, but once it is broken there should be no turning back on the way higher.
Trading Recommendation:
We bought EUR at 106.35 with a stop at 105.70. If you are not long EUR already, then buy a break above 106.78 with the same stop.