Today's support and resistance levels:
S1: 127.40 R1: 128.76
S2: 126.67 R2: 129.56
S3: 126.13 R3: 130.21
Technical overview:
The dynamic of the rally from 119.07 clearly tells us that we are indeed in wave iii of 5. The first possible target for this wave iii, after the break above 127.70, is 128.76, but we find it more likely to see a continuation higher towards 130.93 where wave iii will be 2.618 times longer than wave i. In the short term, we expect that support at 126.67 will protect the downside for the next rally higher towards 130.93.
Trading recommendation:
We long EUR from 124.65 and will lift our stop higher to 123.80. If you do not have long positions on EUR already, we recommend buying EUR near 126.67 with the same stop.