Today's support and resistance levels:

R3: 133.10

R2: 132.88

R1: 132.52

Current spot: 132.13

S1: 131.95

S2: 131.50

S3: 130.77

Technical overview:

We have seen a nice five wave decline from 133.81 down to 129.97, which marked wave i. The following correction of wave i has been a double zigzag correction from 129.97 up to 132.52. The correction to 132.52 was slightly above the 61.8% retracement target for wave i at 132.34, this correction marks wave ii and we should now see a very powerful wave iii towards at least 128.67, but it will be more likely, that we would see an extension lower to 126.29, before wave iii is over. The following wave iv correction should be a shallow correction to 128.67 and then the final wave v of A down to 124.92. This five wave decline in wave A should be followed by a 61.8% correction in wave B to 130.41 before wave C lower takes over for a decline down to 121.52. This will be the roadmap for the unfolding wave II correction over the coming weeks.

Trading recommendation:

We short EUR from 131.92 and will move our stop lower to 132.90. We will place our take profit at 125.35.