Today's support and resistance levels:
R3: 138.73
R2: 138.51
R1: 138.34
Current spot: 138.31
S1: 138.17
S2: 137.82
S3: 137.65
Technical summary:
As expected, we saw the ongoing correction move a little higher. We were looking for a correction to 138.32 as the ideal target, but it moves slightly higher to 138.42. However, it has changed nothing in the larger picture. Now, we are looking for a break below support at 138.17 to indicate that the uderlying downtrend has resumed for a decline to 137.50 on the way lower to 136.22 and the equality target at 134.34.
Trading recommendations:
We are short in EUR at 138.95 with stop placed at 138.76. If you are not short in EUR yet, then sell upon a break below 138.17 with the same stop at 138.76.