Today's Support and Resistance Levels:
S1: 102.37 R1: 103.29
S2: 101.85 R2: 103.67
S3: 101.03 R3: 104.03
Technical Overview:
Our preferred scenario is working well. With the break below important support at 103.28 we had our final confirmation that wave iii is developing as it was expected. We should see a break below 102.85 soon and, more importantly, 102.68; it will confirm the next move lower towards 101.85 as wave iii extends. However, we firmly believe, that wave iii could easily extend even more and decline further towards 100.60. Our target for decline from the 104.59 peak is at 99.35, so we have quite some downside ground to cover.
A break above 104.04 is risky for our scenario and, more importantly, 104.42 as it would leave us with a three wave decline, which, as we know, is corrective and would call for new high above the 104.59 peak.
Trading Recommendation:
You should be short EUR from 104.50. Move stop down from 104.65 to break-even, so the risks will be minimized.