Today's Support and Resistance levels:
S1: 1.5309 R1: 1.5350
S2: 1.5282 R2: 1.5428
S3: 1.5363 R3: 1.5496
Technical overview:
We are still looking for more evidence that a new major rally has begun. That is true, we have seen a break above 1.5342, but the follow through was very limited and not proved enough that the new rally has indeed begun. In the short term we are looking for support at 1.5303, which will ideally protect the downside for a break above 1.5350 and, more importantly, a break above 1.5363 for the next strong rally higher. However, we must accept the possibility for an expanded flat correction building in red wave ii and that would call for a continuation down to 1.5263 before the next rally higher.
Trading recommendation:
We are long EUR from 1.5315 with 1.4960 stop. If you are not long EUR already we recommend buying EUR upon a break above 1.5350 with the same stop.
