Today's support and resistance levels:

R3: 128.50

R2: 128.28

R1: 127.78

Current spot: 127.53

S1: 127.23

S2: 126.92

S3: 126.13

Technical overview:

When strong short-term resistance at 126.91 was broken, we knew that we need a rally towards 128.28 before the next attempt to break below strong support at 124.96 will be seen. We have seen a test of 128.11 till now, and as long as support at 127.23 protects the downside we expect that we will see one last rally higher to 128.28 before the next decline sets in. However, a break below 127.23 and, more importantly, a break below 126.91 will confirm, that we already have terminated the correction from 124.96 and a new test of this important support should be seen. In the longer term, we are still looking for a break below 124.96 for a decline towards our ideal target near 118.73, where wave 2 will have corrected 38.2% of wave 1.

Trading recommendation:

Our stop at 127.10 was taken out, but we fixed a nice profit all the same. We are looking for a new EUR selling opportunity and will sell at 128.20 or upon a break below 127.23 with a stop at 129.40.