Today's Support and Resistance levels:
S1: 107.34 R1: 107.67
S2: 107.01 R2: 108.33
S3: 106.87 R3: 108.89
Technical Overview:
We are in a consolidation after the break above the Base channel resistance-line, but as this line continues to act as support we can expect the prices to take off at any time. Wave 3 is the wave we will normally expect to extend and be longer than the two other impulsive waves. If wave 3 is going to be equal in length to wave 1 it will give us a target of 110.85, which is very close to the March 2012 top at 111.43. However, we will be looking for clues that this wave extends and becomes longer than wave 1, which will give us a target of at least 117.31 and possibly even higher. In the short term we expect support at 106.84 to protect the downside for a break above 107.67 which calls for the next rally higher towards the next minor targets at 108.33 and 108.89, but the next major target is at 110.83.
Trading Recommendation:
You should be long EUR from 106.20 with a stop at break even. If you are not long EUR already you should buy a break above 107.67 with the same stop.