Today's Support and Resistance Levels:
S1: 109.55 R1: 109.85
S2: 109.00 R2: 110.28
S3: 108.63 R3: 111.30
Technical Overview:
With a low at 108.63 yesterday, we saw only a very small correction from the 109.54 high, before the next rally higher towards strong resistance near 111.43 began. That said, we have to consider the possibility that the ongoing price-action, which starts from the 109.54 high, is part of an expanded flat correction. If it is so, we should not break above 109.85, but instead look at a break below 109.03, which will confirm that an expanded flat correction is unfolding for a decline down to 108.34. There the next powerful rally should unfold. However, a direct break above 109.85 will indicate that the correction we saw down to 108.63 yesterday was the only correction we are going to get this time and that a test of strong resistance near 111.43 is next. In the long term we are still looking for much higher levels.
Trading Recommendation:
We are long EUR from 106.75 with a stop at break-even. If you are not long EUR already, then buy EUR at 108.45 if seen with the same stop.