Today's support and resistance levels:

R3: 129.20

R2: 128.96

R1: 128.70

Current spot: 128.44

S1: 128.09

S2: 127.42

S3: 127.10

Technical overview:

We have seen a nice impulsive decline from the 131.31 high, which confirms that the x wave did end at 131.31 and the second zigzag lower now has begun. In the short term, we are looking for a minor rally towards resistance at 128.70 and maybe 128.96 before the next decline sets in. A break below support at 128.09 and, more importantly, a break below 127.42 confirms, that the next decline towards strong support at 126.30 is developing. However, a break below support at 126.30 confirms, that a decline to our ideal wave 2 target at 118.73 is developing.

Trading recommendation:

We short EUR from 130.75 and will move our stop lower to 131.35. If you do not have short positions on EUR yet, then sell it close to 128.70 with the same stop.