Today's Support and Resistance Levels:

S1: 102.93                    R1: 103.63

S2: 102.56                    R2: 103.90

S3: 102.27                    R3: 104.71

Technical Overview:  

The triangle ended earlier as it was expected. However, there was an expected outcome. We have seen a clear break on the upside, a break that was confirmed with the break above the top of the triangle’s wave B at 102.80. Consequently, we know that wave 5 of the impulsive rally from July’s low at 94.10 is well under way. We should try to find the possible target for this wave 5. The first target is calculated by taking the distance from the bottom of wave 1 to the top of wave 3 and multiplying it by the Fibonacci number 38.2%, and adding it to the end of wave 4. It gives us a target of 104.71 as the first possible target for wave 5. We do the calculation over again, but this time with 50% and 61.8% (you can see the targets plotted on the chart in orange). The calculation with the 50% is not the most common target, but we have seen as it had been the target many times, so we include it in our calculations. Which of the targets is the most likely to end wave 5, is probably the question you would like to know the answer. We think that the most likely target is one of the 38.2% target at 104.71. It is close to the target where we will take profit on our long EUR position.

Trading Recommendation:

You should be long EUR from 102.85 with a stop at 101.75 and place your take profit at 104.50.