Today's Support and Resistance Levels:
S1: 109.45 R1: 109.86
S2: 108.87 R2: 110.34
S3: 108.60 R3: 110.84
Technical overview:
There was no time for even a minor correction yesterday. If there were any doubts that wave iii of 3 was developing, there is absolutely no doubt any more. The major rally we saw yesterday is exactly the price-behavior we expect from wave iii of 3. It is tempting to cash in some nice profit, after yesterday’s run, but that will likely just mean, that we misses the next rally higher towards the 110.84 to 111.43 area. Even though the level of 111.43 seems to be a major resistance, the risk is that this resistance will be broken without any trouble for a continuation higher towards 113.53. In the short term we have support at 109.45 and again at 108.60.
Trading Recommendation:
We are long EUR from 106.75 and will move our stop higher to break even at 106.75. If you are not long EUR already then buy on even the smallest setback with the same stop.