Today's Support and Resistance Levels:
S1: 1.5786 R1: 1.5801
S2: 1.5766 R2: 1.5836
S3: 1.5749 R3: 1.5901
Technical Overview:
We have just seen the minor impulsive rally from 1.5679 which is the first clue that wave three is under way. We already know that wave three will be an extended wave as we have seen a series of waves one and two. Therefore, we should look for a very powerful rally once we break above important resistance at 1.5836. However, before we will see the break above 1.5836 we should see a minor correction towards 1.5766 and maybe even down to the 1.5732 - 1.5749 area before wave three really takes over. A clear break above 1.5836 will call for a continuation higher towards 1.6059 as the next major resistance, but in the long term we are expecting much higher levels.
Trading Recommendation:
We are long from 1.5800 with a stop at 1.5650. If you are not long EUR already buy at 1.5755 with the same stop.
