Today's Support and Resistance Levels:
S1: 1.5500 R1: 1.5528
S2: 1.5457 R2: 1.5545
S3: 1.5390 R3: 1.5600
Technical Overview:
We still need a rally above 1.5543, and more importantly 1.5602 before we feel confident that an important bottom is in place. That said, the small rally from the 1.5457 low displays impulsive characters, which is a good sign. However, we need more evidence to feel sure, that 1.5457 was an important low. A break above 1.5602 will do the trick and indicate that wave iii of 3 has begun for a new powerful rally higher. The first major target for this wave iii is at 1.5927. However, as long as minor resistance at 1.5602 stays intact the risk is still towards the downside, but at no point a break below 1.5390 can be allowed, as it will force us to shift towards a more bearish count.
Trading Recommendation:
We are long EUR from 1.5510 with a stop at 1.5385. If you are not long EUR already wait for a break above 1.5543 before buying EUR with the same stop.
