Today's Support and Resistance levels:
R3: 1.5885
R2: 1.5840
R1: 1.5798
Current spot: 1.5772
S1: 1.5750
S2: 1.5710
S3: 1.5681
Technical overview:
We have seen the expected correction down to 1.5770 (it has been a little deeper with a test of 1.5749), but we should be ready for the next rally higher and are looking for a break above minor resistance at 1.5840 to confirm the next strong rally higher. On this next rally higher we are also looking for a clear break above the base-channel resistance line confirming that we are in red wave iii, which ideally should make it to at least 1.6481 and possibly even higher. That said, as long as minor resistance at 1.5798 and more importantly resistance at 1.5840 protects the upside, we must allow for a decline lower towards 1.5735, but we do favor the rally higher from here.
Trading recommendation:
We are long EUR from 1.5790 with our stop placed at 1.5615. If you are not yet long EUR, then buy a break above 1.5840 with the same stop.
