Today's support and resistance levels:
S1: 129.35 R1: 130.09
S2: 128.44 R2: 130.30
S3: 127.72 R3: 130.90
Technical overview:
We have clearly seen a loss of upside momentum, but, as long as minor support at 129.35 and, more importantly, support at 128.44 protects the downside, we are still looking for one more new highs closer to our ideal target near 130.90. In the short term, a break above 129.92 will confirm one last rally higher. That said, it should be accepted that we are close to the top of wave iii of 5 and a relatively large correction is to follow. It should not be a deep correction, on the contrary, it should be a shallow and complex correction as wave iv of 5 unfolds. The ideal target for this wave iv will likely be within the 127.77-128.03 area.
Trading recommendation:
We where stopped out at 128.65 with a nice profit. We will sell EUR at 130.25 with a 131.25 stop and take profit at 128.50.