Today's Support and Resistance levels:
S1: 1.5264 R1: 1.5314
S2: 1.5235 R2: 1.5369
S3: 1.5188 R3: 1.5409
Technical overview:
We have seen a small break below support, which does open the possibility for a slightly deeper decline in wave c, of the expanded flat correction, towards 1.5188. That said, a break above 1.5320 will weaken the downside momentum and a break above 1.5409 confirms that wave c is finished and wave iii higher is developing. As wave ii is an expanded flat, we are more than convinced that wave iii will be an extended wave and at least 1.618 times wave i, but it could easily be both 2 times and 2.618 times longer than wave i. However, for now we are looking for a bottom of wave c near 1.5188 or upon a break above 1.5320.
Trading recommendation:
We long EUR from 1.5350 with at stop at 1.5075. If you have not already long EUR, we recommend buying EUR close to 1.5188 or upon a break above 1.5320 with the same stop.
