Today's Support and Resistance levels:

R3: 132.78

R2: 132.27

R1: 131.84

Current Spot: 131.43

S1: 131.05

S2: 130.81

S3: 130.30

Technical overview:

After the break above the channel resistance line we are looking for a rally back towards the top at 133.81 in a flat correction, which would mark the b-wave and should be followed by the c-wave lower towards at least 124.96 and possibly lower. In the short term we would like to see minor support at 131.05 to protect the downside for a break above 131.84 and, more importantly, a break above 132.27, which confirms a continuation higher towards 132.59 and 132.78 before our ideal target at 133.81. That said, it should be remembered, that all conditions for the flat b-wave rally already has been fulfilled, so we will have to be aware of signs, that the b-wave should be over and the c-wave decline is ready to start.

Trading recommendation:

We are long EUR from 130.60 and will move our stop higher to 131.00. We will place our take profit at 133.25.