It finally seems that blue wave ii has come to an end. In the short term, we are looking for resistance at 131.55 to protect the upside for a break below 131.07, which will confirm a continuation lower towards strong support at 130.40. However, if our count is correct, support at 130.40 would like seem like butter and prices would cut through it like a warm knife. In the long term, we are looking for a retest of strong support at 124.96 in a flat correction. We might fall even more, but for now let us concentrate on getting down to 124.96. The risk is a break above 131.55 which would make the decline from 131.98 look like a correction a call for a new test of this resistance.
Trading recommendation:
We short EUR from 129.55 with a stop at 132.80. Upon a break below 131.07, we will lower our stop to 132.00. If you do not have short positions on EUR already, then sell upon a break below 131.07, with the same stop at 132.00.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s support and resistance levels:
R3: 131.98
R2: 131.79
R1: 131.55
Current Spot: 131.18
S1: 131.07
S2: 130.79
S3: 130.41
Technical summary:
It finally seems that blue wave ii has come to an end. In the short term, we are looking for resistance at 131.55 to protect the upside for a break below 131.07, which will confirm a continuation lower towards strong support at 130.40. However, if our count is correct, support at 130.40 would like seem like butter and prices would cut through it like a warm knife. In the long term, we are looking for a retest of strong support at 124.96 in a flat correction. We might fall even more, but for now let us concentrate on getting down to 124.96. The risk is a break above 131.55 which would make the decline from 131.98 look like a correction a call for a new test of this resistance.
Trading recommendation:
We short EUR from 129.55 with a stop at 132.80. Upon a break below 131.07, we will lower our stop to 132.00. If you do not have short positions on EUR already, then sell upon a break below 131.07, with the same stop at 132.00.
The material has been provided by InstaForex Company – www.instaforex.com
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