Today's support and resistance levels:
R3: 1.5717
R2: 1.5658
R1: 1.5593
Current spot: 1.5546
S1: 1.5518
S2: 1.5463
S3: 1.5426
Technical overview:
We are a bit surprised to see the rather big correction from the 1.5717 high, but that said, we are still bullish due to the break out of the falling channel and the fact that the rallies do have an impulsive character. In the short term we are looking for support near 1.5518 and a break above 1.5593, which will confirm the next rally higher towards 1.5717 and beyond. However, until we see the break above 1.5593, we should accept the possibility of a slightly deeper correction. Ideally, either 1.5518 will hold, or else we will see a continuation down to 1.5463 before the next move higher.
Trading recommendation:
Our stop at 1.5550 has been hit for a nice profit. We will buy EUR again here at 1.5550 with a stop at 1.5440.
