Today's Support and Resistance levels:
S1: 1.5403 R1: 1.5483
S2: 1.5356 R2: 1.5528
S3: 1.5319 R3: 1.5577
Technical overview:
We are looking for one last decline in wave c of an expanded flat correction, which in developing in wave ii. We expect the minor resistance at 1.5483 in the short term will protect the upside for this last decline towards the 1.5361 - 1.5375 area, with a possibility of an extension towards the 1.5319, but looking at the structure we do think the risk of an early termination of this expanding flat is more likely. From 1.5375 or upon a break above 1.5527 we expect a powerful wave iii higher towards at least 1.5853, but an extension of wave iii is more likely, which would push wave iii higher towards 1.6148 and possibly even higher towards 1.6330.
Trading recommendation:
We are looking for a EUR-buying opportunity and will buy EUR at 1.5380 or upon a break above 1.5527 with a stop at 1.5075. If we break above 1.5527 we will quickly move our stop higher.
