Today's Support and Resistance levels:
S1: 1.5406 R1: 1.5455
S2: 1.5356 R2: 1.5501
S3: 1.5319 R3: 1.5557
Technical overview:
Our description of the rally higher has been a perfect match. With the slight break above 1.5512 top the fact that an important bottom is in place at 1.5080 and that a new major rally is developing is confirmed. We have wave i of this new major rally and now we are looking for wave ii. This wave ii should be corrected between 50% and 61.8% of wave i, which would mean a decline towards the 1.5263 - 1.5319 area before the next rally higher. However, we must remember that the second waves are allowed to correct even more of wave i. Once this wave ii correction is over we should see an even more powerful rally high towards at least 1.6100. But we would not be surprised to see an even bigger rally towards 1.6578. But for now we should remain focused on the wave ii correction towards the 1.5263 - 1.5319 area.
Trading recommendation:
Our take profit level at 1.5520 was hit for a nice quick profit. We are looking for a new EUR-buying opportunity and will buy EUR at 1.5330 with a stop at 1.5075.
