Today's support and resistance levels:
S1: 1.5846 R1: 1.5878
S2: 1.5807 R2: 1.5933
S3: 1.5766 R3: 1.5975
Technical overveiw:
The price action since the impulsive rally from 1.5670 to 1.5871 is clearly corrective in character, which indicates, that we will soon see a break above important resistance at 1.5878. A break above resistance at 1.5878 will signal that wave e of the expanding triangle fell short of its ideal target and that a new powerful rally has begun. However, as long as resistance at 1.5878 protects the upside we should expect a minor decline towards 1.5807, but we are unlikely to see anything lower than 1.5765 before the next test of important resistance at 1.5878 sets in and a break above 1.5878 will call for a powerful rally higher towards 1.6134 and 1.6253.
Trading recommendation:
We will buy EUR at 1.5815 or upon a break above 1.5878 with a stop at 1.5760.
