Today's Support and Resistance levels:
R3: 1.6963
R2: 1.6887
R1: 1.6806
Current Spot: 1.6742
S1: 1.6710
S2: 1.6646
S1: 1.6646
Technical overview:
We saw support at 1.6583 on Friday, just above our expected 1.6577. As we are entering red wave iii of black wave iii we should soon see a very powerful rally higher towards at least 1.7047 and possibly higher. In the short term we expect that support at 1.6710 will protect the downside for a break above 1.6806 confirming the next powerful rally higher towards 1.7047. However, if support at 1.6710 breaks, then the potential downside price action should be limited to 1.6646 before the next move higher.
Trading recommendation:
We are long EUR from 1.6335 and will move our stop higher to 1.6575. If you are not long EUR yet you should buy close to 1.6710 or upon a break above 1.6806 with the same stop.
