Today's Support and Resistance Levels:
S1: 1.6011 R1: 1.6074
S2: 1.5961 R2: 161.06
S3: 1.5932 R3: 1.6138
Technical Overview:
With the direct break above 1.5917, we knew that the correction was already over and a new rally higher towards 1.6004 was ongoing. However, even 1.6004 was not enough and we saw a minor high at 1.6059. This high should soon be broken for a move to the next target near 1.6127. However, longer term we should be looking for much higher levels as wave 3 progresses with 1.6314 as a minimum target. Short term we should see 1.6010 protect the downside for a break above 1.6059 for a move towards 1.6127 as the next target. Once 1.6127 is tested, expect a new correction down to the 1.5792 - 1.5915 area. But remember that the corrections in wave 3 tend to be small and even sub-normal.
Trading Recommendation:
We are long on EUR from 1.5510 and will move our stop higher to 1.5930 and will take profit at 1.6115.
