Today's Support and Resistance Levels:
S1: 1.5686 R1: 1.5751
S2: 1.5652 R2: 1.5796
S3: 1.5596 R3: 1.5841
Technical Overview:
We have seen the bottom of red wave ii at 1.5506 and we should turn our focus towards the next resistance level to break, which is at 1.5841. A break above resistance at 1.5841 will confirm the bottom and call for a continuation higher towards 1.6010 and later on beyond 1.6218. The extremely deep correction in red wave ii was a bit unusual, but second waves are allowed to retrace the entire first wave, but they can never break below the bottom of the first wave that meant we had a very clear last line of defence in 1.5445. We should also remember, that we had a "Hidden Divergence", which was validated with the break above 1.5714 and that normally tells us, that the coming rally will be very powerful, so be ready for it.
Trading Recommendation:
We are long EUR from 1.5655 and will raise our stop higher to 154.95. If you are not long EUR already, then buy at 1.5675 or a break above 1.5841 with the same stop.
