Today's support and resistance levels:
S1: 1.5484 R1: 1.5537
S2: 1.5462 R2: 1.5561
S3: 1.5444 R3: 1.5601
Technical overview:
We have finally seen a clear break above the decending channel, which confirms our long-term bullish view. In short-term we expect support at 1.5484 to protect the downside for a continuation higher towards at least 1.5601 and likely even higher towards 1.5675. From 1.5675 we could see a minor set-back towards 1.5484 again before the next powerful rally higher. That said, we would like to point out that we are in wave iii and corrections can easily be sub-normal as we saw yesterday, where there was no time for a set-back to 1.5324 before the continuation higher.
Trading recommendation:
We long EUR from 1.5350 and we will move our stop higher to 1.5380 securing us a profit no matter what happens. If you do not have long EUR positions, buy close to 1.5484 or upon a break above 1.5537 (one order done cancels the other), use the same stop at 1.5380.
