Today's Support and Resistance Levels:
R3: 133.53
R2: 132.95
R1: 132.42
Current Spot: 132.05
S1: 131.34
S2: 130.95
S3: 130.51
Technical Summary:
With the break below 132.88 late Friday we knew, that the 1-2/1-2 scenario was incorrect and, that we needed to switch to the expanded leading diagonal scenario. This scenario called for a deeper correction towards 132.11 and maybe even lower towards 131.43. For now we have seen a low at 131.73 and therefore we should expect a short term correction towards 132.42 before the next push lower towards the ideal corrective target near 131.43 only from here should we expect wave iii to take over for the next impulsive rally higher towards 137.45 and possibly higher. But for now we should stay focused towards the downside as wave ii is still in power.
Today's Support and Resistance Levels:
R3: 1.6504
R2: 1.6418
R1: 1.6353
Current Spot: 1.6300
S1: 1.6264
S2: 1.6219
S3: 1.6200
Technical Summary:
It is not quite clear whether wave ii ended at 1.6219 or that just was wave a of ii. I do favor the scenario, where wave ii did end at 1.6219, but we will have to stay flexible. If we only have seen wave a at 1.6219, then wave b of ii took us to 1.6418 and wave c of ii is currently unfolding for a move lower towards 1.6200 before wave iii takes over for a rally higher towards at least 1.6776. Only a direct break above 1.6353 and more importantly a break above 1.6418 will confirm, that wave iii is developing for the rally towards 1.6776 and higher towards 1.7274 longer term.
