Today's Support and Resistance Levels:

S1: 104.10                   R1: 104.71

S2: 103.78                   R2: 105.14

S3: 103.14                   R3: 105.55

Technical Overview: 

We saw the expected rally towards the ideal target at 104.71 yesterday. We did not quite reach the ideal target, but with a high at 104.59, just 12 small pips below our target, we think that the impulsive rally from 94.10 is over. That said, now we need to see some sufficient proofs that the rally is indeed over. The first good indication will be a break below 103.14, especially if this decline is a small five wave decline. Until the break below 103.14 we could observe one last move higher towards the ideal target, but we would not bet on the outcome.
As we said yesterday, the coming correction would be the largest both in price and in time since the 94.10 low. It means we should see a decline of at least 422 pips and it should take more than a month to develop. The first major correction target will be in the range 99.35 to 99.62. As we are looking for a wave two we expect this correction to be a simple zigzag correction. However, there is no guarantee, that it will be the right correction; we have just to see the way it unfolds.

Trading Recommendation:

You should take profit at 104.50 and reverse you position to a sold EUR position. Place stop at 105.50. If you are not short EUR already sell at 104.50 or a break below 103.78 (one order cancels the other) with the same stop.