Today's Support and Resistance Levels:
S1: 1.5875 R1: 1.5900
S2: 1.5861 R2: 1.5918
S3: 1.5838 R3: 1.6009
Technical Overview:
We saw the expected minor decline to 1.5840 (the low was at 1.5838) here the next rally took off. The rally since the 1.5390 low is still vey overlapping in its structure, but the best explanation for this behavior is that a series of waves one and two is developing. However, that also means that once the series of wave three begins to take over we can expect a very strong and powerful rally higher. In the long term we are looking for much higher levels here with 1.6977 being the first major target.
In the short term we would like to see a break above 1.5904, and more importantly 1.5918, which confirms the next rally higher towards the next minor target at 1.6009.
Trading Recommendation:
You should be long EUR from 1.5800 with a close stop at 1.5785 move stop higher to 1.5835 upon a break above 1.5918. If you are not long EUR already buy a break above 1.5918 with a stop at 1.5835.
