Today's Support and Resistance levels:
R3: 1.7160 (1st target for black wave v)
R2: 1.7113
R1: 1.7033
Current Spot: 1.6977
S1: 1.6950
S2: 1.6897
S3: 1.6825 (top of red wave i)
Technical overview:
As important support at 128.25 (top of red wave i) protected the downside we are now looking for a break above resistance at 1.7033 to confirm, that the next rally towards the first possible target for black wave v at 1.7160. That said we expect that black wave v will continue towards its next possible target at 1.7400, where it will be 50% of the distance traveled from the bottom of black wave i (1.5080) to the top of black wave iii (1.7109) and recently it could reach 1.7640, where it will be 61.8% of that same distance. However, we shall remember that in the sense of the Elliott Wave Principle we can already count five waves from the 1.5080 low and therefore we should be aware of the risk of a possible top at any time now.
Trading recommendation:
We are long EUR from 1.6450 and will move our stop higher to 1.6860. New long EUR-positions should only be taken with close stops and quick exits.
