Today's Support and Resistance levels:
S1: 1.5371 R1: 1.5436
S2: 1.5315 R2: 1.5468
S3: 1.5240 R3: 1.5522
Technical overview:
The rally from the 1.5080 low has all the characteristics of an impulsive rally, but we still need a break above 1.5521 to confirm that an important low is in place at 1.5080. If/when we break above resistance at 1.5521 we expect that a new major rally is unfolding for a rally higher towards at least 1.6366 and likely even higher in the longer term. In the short term we look for a minor support at 1.5307 to protect the downside for the next rally higher towards 1.5490 from where we should see some sideways consolidation before that last rally above important resistance at 1.5521. Once a new high slightly above 1.5521 is set we should expect a correction towards the 1.5250 - 1.5305 area, from where an even more powerful rally is expected.
Trading recommendation:
We are long EUR from 1.5230 and will move our stop higher to 1.5295 and place a take profit at 1.5520 leaving us with a profit not matter what the outcome will be. If you are not long EUR already, then buy at 1.5350 or upon a break above 1.5390 with the same stop and take profit levels.
