Today's support and resistance levels:
S1: 120.79 R1: 121.49
S2: 120.51 R2: 121.97
S3: 119.78 R3: 122.55
Technical overview:
The odds still favour, that the X wave did terminate with the test of 121.83 yesterday, but we still need a break below 120.40 to confirm that the third and last zigzag combination is unfolding. In the short term, we are looking for resistance at 121.48 to protect the upside for a break below 120.81 and of course, more importantly, a break below 120.40, which confirms that the last decline from 127.70 high is unfolding for a move down to our ideal target at 117.28, where wave 4 will have corrected 38.2% of wave 3. That said, any break above 121.48 will delay the downside pressure for one last push higher to 122.74 before the next decline sets in.
Trading recommendation:
We are short EUR from 120.90 and will move our stop lower to 121.90 and keep our take profit at 117.50. If you do not have short positions on EUR yet, then sell a break below 120.81 with the same stop.