Today's support and resistance levels:
S1: 121.66 R1: 122.18
S2: 120.96 R2: 122.55
S3: 120.35 R3: 122.75
Technical overview:
The failure to break clearly below support at 120.40 followed by a break above 121.48 indicates that the x wave is still developing. In the short term, we should expect support at 121.66 protecting the downside for a move higher towards 122.75, where we expect the x wave to terminate and the last zigzag combination to unfold towards the ideal target, for this wave 4 correction, at 117.28. Once the wave 4 correction is finished, we will be looking for wave 5 to take over for a move above 127.70.
Trading recommendation:
Our 121.90 stop was hit on Friday. We are looking for a new EUR shorting opportunity at 122.65 with a 123.95 stop and take profit level at 117.50