Today's Support and Resistance Levels:
S1: 1.5840 R1: 1.5907
S2: 1.5830 R2: 1.5927
S3: 1.5813 R3: 1.5989
Technical Overview:
Another small wave ii is building, which will likely cause a correction to 1.5840, before the next rally higher sets in for a break above 1.5907. A break above 1.5907 confirms the next rally higher towards 1.5989. However, in the long term we expect much higher levels here and the next major target is at 1.6967, which was the top in May 2012. As we said yesterday, we had broken above the major ending diagonals resistance-line, which should cause a major rally back to the start of the ending diagonal, which in this case will be at 1.8133 and likely even higher at 1.9571. However, for now we should concentrate on the small correction from 1.5927, which ideally will terminate close to 1.5840 for the next rally higher.
Trading Recommendation:
You should be long EUR from 1.5800 with a stop at 1.5785. If you are not long EUR already you should buy at 1.5845 or a break above 1.5907 (one order done cancels the other). Stop should be placed at 1.5785.
