Today's support and resistance levels:
R3: 1.5834
R2: 1.5773
R1: 1.5742
Current spot: 1.5709
S1: 1.5680
S2: 1.5648
S3: 1.5600
Technical overview:
Red wave iii of iii is progressing nicely, but we would still like to see some real acceleration through the base channel resistance line to confirm that wave iii will extend. In the short term, we would like to see support at 1.5680 protecting the downside for a break above 1.5742 and, more importantly, a break above 1.5770, which will confirm the next rally higher to 1.5918. That said, a break below 1.5680 will pave the way for a slightly deeper correction to 1.5648 before the next move higher will be seen.
Trading recommendation:
We long EUR from 1.5550 and will move our stop higher to the break-even point at 1.5550. If you do not have long positions on EUR already, then buy EUR near 1.5680 with the same stop.
