Today's Support and Resistance levels:
R3: 129.91
R2: 129.70
R1: 129.38
Current spot: 128.08
S1: 128.71
S2: 128.42
S3: 128.14
Technical overview:
The falling channel resistance line has now been tested three times and held. Normally, this is a signs of strength and could indicate a very strong downside pressure soon. As we are looking for wave c lower, a strong downside pressure would make sense in our eyes. In the short term we are looking for a break below 128.61 as the first indication that renewed downside pressure is taking over. While a break below 128.14 is needed to confirm that yet another top is in place and wave c lower towards at least 124.96 is in progress. However, the risk is still a break above 129.90, which will open up for a move towards 131.31 and likely also higher towards the top at 133.81, in a much more complex correction.
Trading recommendation:
We are short EUR from 128.20 with a stop at 129.95. If you are not short EUR, we will recommend selling upon a break below 128.61 with the same stop at 129.95.