Today's support and resistance levels:

R3: 131.12

R2: 130.81

R1: 130.28

Current spot: 129.79

S1: 129.41

S2: 129.06

S3: 128.65

Technical overview:

Yesterday we moved a little higher, than our expected resistance at 130.69 (the high came in at 130.80), before the floor was dragged away under this cross. The decline from 131.12 down to 128.65 has all the earmarks of an impulsive decline, therefore we should only be looking for upside corrections and impulsive declines for now, as the correction from 128.65 seems to be over, we will now be looking for a very dynamic and powerful decline towards at least 126.30 (where wave iii will be 1.618 times longer than wave i) in wave iii of C. In the short term, a break below 129.41 will confirm that wave iii is developing for the decline towards at least 126.30 and maybe even lower. In the short term, we would like to see resistance at 130.05 and, more importantly, resistance at 130.28 protecting the upside for a break below 129.41.

Trading recommendation:

We sold EUR at 130.25 and will move our stop lower to 131.20. If you do not have short positions on EUR yet, then sell at a break below 129.41 with the same stop.