Today's Support and Resistance Levels:
S1: 114.82 R1: 115.25
S2: 114.52 R2: 115.55
S3: 114.05 R3: 115.99
Technical Overview:
As we have observed a clear break above minor resistance at 114.51, we could have seen the bottom for wave 4. However, a break above important resistance at 115.55 is needed to confirm the bottom and a new rally higher towards 115.99 and beyond towards the 117.50 - 117.90 area as the next target. In the short term we will be looking for minor resistance at 115.25 to protect the upside for a minor setback towards 114.51 before the next rally higher to challenge important resistance at 115.55. The risk at this point is a break below 114.07, which would call for one last decline towards 113.24 before the next rally higher.
Trading Recommendation:
We took a small profit and reversed our short EUR position yesterday at 114.65. Now EUR is long from 114.65 and will place our stop at 112.85.