Today's Support and Resistance Levels:
S1: 122.92 R1: 123.51
S2: 122.27 R2: 123.90
S3: 121.71 R3: 124.29
Technical Overview:
We have seen the expected pressure building towards the downside and is close to our first target at 121.26, which marks the 23.6% corrective target of wave 3. However, looking at the short term structure from the 125.90 we are currently working on wave iv and should soon see the final fifth wave down towards 121.71 as the first target for wave v and 121.26 as the next. As we now have a cluster calling for a decline to 121.26, we will expect to see this support tested soon, once tested we should then look for a correction higher towards 123.42 before the final move lower towards the ideal taget at 117.28.
Trading Recommendation:
We are short EUR from 125.70 and will move our stop lower to 124.75. Once we break below 122.40, we will move the stop down further to 124.50. Take profit will be placed at 121.50.