Today's Support and Resistance levels:

R3: 129.95

R2: 129.34

R1: 128.78

Current Spot: 128.59

S1: 128.09

S2: 127.81

S3: 127.44

Technical overview:

After the break above important short-term resistance at 126.91 we expected a rally higher towards 128.28. We have seen a rally beyond that point, but it is no crucial any way. A break above resistance at 129.34 would not be expected, but only a break out of the falling channel will indicate that the wave 2 correction from 133.81 ended early and the next impulsive rally higher in wave 3 has already begun. However, if resistance at 129.34 protects the upside for a break below 127.81 and, more importantly, a break below 127.05 we know that we have a top in place for a new decline towards strong support at 124.96.

Trading recommendation:

We sold EUR at 128.20 and has placed our stop at 129.40. If you are not short EUR already, then sell EUR on a break below 127.82 with the same stop at 129.40.