Today's Support and Resistance levels:

R3: 130.11

R2: 129.88

R1: 129.69

Current Spot: 129.50

S1: 129.14

S2: 128.89

S3: 128.54

Technical summary:

The correction we had expected yesterday became slightly bigger, than we had thought. We expected a correction towards 130.40, but the high came in at 130.73. However, the decline from 131.97 to 129.80 was a clear five wave pattern (wave i of blue wave iii) which called for more downside action once the correction was over (wave ii of blue wave iii). We have now entered a part of the decline from 131.97, which is likely to be the strongest one. We are looking for a decline, at least, to 128.54, but this decline will likely extend lower towards 127.20 before wave iii of blue wave iii is over. In the short-term outlook, we are looking for resistance at 129.69 and maybe 129.86 to protect the upside for a break below 129.14 towards 128.54.

Trading recommendation:

Stay short on EUR from 129.55 and move stop lower to 130.75. Otherwise sell near 129.69 with stop at 130.75.