Today's Support and Resistance Levels:
S1: 1.5654 R1: 1.5727
S2: 1.5620 R2: 1.5751
S3: 1.5583 R3: 1.5788
Technical Overview:
Trying to pick the bottom of this correction has been a very difficult task, even though we had a clear loss of downside momentum. Yesterday we saw a spike down to 1.5583, but the following rally looks impulsive, and all we need now is a break above 1.5751 as the first good indication that an important low is in place. However, more importantly, we need a break above 1.5841 to confirm the low for a new rally higher towards 1.5975 and 1.6218. In the short term we expect minor resistance at 1.5751 will protect the upside for a minor setback towards 1.5632 before the next move higher through 1.5751 for a test of the important resistance at 1.5841. Only a break below 1.5583 will confuse the picture, but any downside below 1.5583 should be very limited.
Trading Recommendation:
Our stop at 1.5650 was taken out yesterday for a small loss, but we are looking to rebuy EUR at 1.5655 or a break above 1.5755 with a stop at 1.5440.
