Today's support and resistance levels:
R3: 137.29
R2: 136.92
R1: 136.82
Current spot: 136.74
S1: 136.41
S2: 136.06
S3: 135.73
Technical summary:
Short-term important resistance at 137.29 has potected the upside, which keeps the sight locked firmly on the equality target between wave A and Wave C at 134.34. In the short run, we would like to see a break below minor support at 136.41 to confirm the next decline towards the long-term target at 134.34. That said, we have to be aware of the risk scenario, which shows a possible inverse S/H/S bottom. This formation needs a break above minor short-term resistance at 137.29. More importantly, it needs a break above the neckline resistance at 138.00 to confirm a rally towards 140.00 and evidently much higher.
Trading recommendation:
We are short in EUR from 137.75 with stop+reverse placed at 137.35. If you are not short in EUR yet, selling should be near 136.95 with the same stop+reverse at 137.35.
The material has been provided by InstaForex Company - www.instaforex.com
