Today's Support and Resistance levels:
S1: 1.5809 R1: 1.5877
S2: 1.5764 R2: 1.5940
S3: 1.5723 R3: 1.6005
Technical overview:
We only saw a rally to 1.5858 followed by a shallow correction down to 1.5764. The question is, was this correction enough? We will have to say yes, even though we had the possibility of a deeper correction. We have noticed in this currency pair that wave two can be very shallow and only retraces the absolute minimum it has to, so we will be on guard for a break above 1.5848 that would confirm the next rally higher towards 1.5947 and 1.6088. However, the risk is a break below 1.5764 that would call for a deeper correction towards 1.5745 and possibly even 1.5723 before the next rally high.
Trading recommendation:
We bought EUR at 1.5770 and have placed our stop at 1.5635. If you are not long EUR already, buy here or a break above 1.5848 with the same stop.
