Today's Support and Resistance levels:
R3: 129.91
R2: 129.50
R1: 128.92
Current Spot: 128.82
S1: 128.09
S2: 127.58
S3: 127.04
Technical overview:
As we broke above resistance at 129.34 the only line of defence we had back was the falling channel resistance line near 129.90. This resistance line has so far protected the upside and we are now looking for a break below important support at 128.09 to confirm that the next decline towards strong support at 124.96 is developing. But what if we break above resistance at 129.90? In our eyes that would indicate an even more complex correction which is developing. But we have not given up on our ideal target at 118.73, where wave 2 will have corrected 38.2% of wave 1. And one thing is for sure, we do not think that the correction from 133.81 has taken long enough. Until now it has taken about four weeks and we expected to take 4 - 8 weeks more.
Trading recommendation:
Our stop at 129.40 was taken out for a loss. We are looking for a new EUR-selling opportunity, we will sell EUR upon a break below 128.20 with a stop at 129.95, but expect to be able to move the stop lower fast.