Today's support and resistance levels:
S1: 1.5877 R1: 1.5929
S2: 1.5836 R2: 1.5948
S3: 1.5782 R3: 1.6024
Technical overview:
Has a new uptrend begun, or are we still locked in the complex correction from 1.6359? Both possibilities are still valid. Yes, we did break above 1.5978, but just slightly and not enough to confirm that this move up from 1.5640 is a new uptrend. That said, we are more in favor of a new uptrend than not, and, if this is the case, we should see support at 1.5838 protect the downside for the next rally higher through 1.5927 and, more importantly, 1.5947, which will confirm a new test of 1.6024 on the way towards 1.6134 and higher. However, a break below 1.5838 will favour the scenario, where we still are locked in the complex correction since the 1.6359 high and call for a new decline towards 1.5640 and maybe even lower.
Trading recommendation:
We long EUR from 1.5770 and will move our stop high to 1.5815. If you do not have long positions on EUR yet, buy EUR near 1.5860 or upon a break above 1.5927 (one order done cancels the other) with the same stop.
