Today's Support and Resistance levels:
R3: 1.7341
R2: 1.7274
R1: 1.7218
Current Spot: 1.7182
S1: 1.7143
S2: 1.7081
S3: 1.7042
Technical summary:
Wave ii only corrected 23.6% of wave i. This is what we would call a sub-normal correction for wave ii. It indicates lots of underlying strength on this pair. With wave ii in place already, we will be looking for higher wave iii, at least, towards 1.7859 and, more likely, wave iii will extend higher towards 1.8397. As wave iii is the most likely candidate to extend, this is the wave we will like to participate in for sure. With the very small wave ii we now know, that we can expect a deep and time consuming wave iv, but we will concentrate on that, when the time comes. For now, it is time for the powerful wave iii. A break above 1.7274 confirms the next part of wave iii is under way.
Trading recommendation:
Buy EUR at 1.7185 with a stop at 1.6985. After a break above 1.7274 raise your stop to 1.7105. If you are more conservative, wait for a break above 1.7274 and place your stop at 1.7105.
