Today's Support and Resistance Levels:
R3: 1.5924
R2: 1.5892
R1: 1.5848
Current Spot: 1.5830
S1: 1.5796
S2: 1.5743
S3: 1.5700
Technical summary:
The decline from 1.6203 has been much stronger than anticipated. If however our long-term bullish count remains, then at no point a break below 1.5743 will take place. It is allowed for the wave second to correct 100% of the first wave, but the origin of wave one (here 1.5743) cannot be broken by a single pip as that would trigger a recount. This leaves us with limited downside potential from here, but we need a break above resistance at 1.5848 and more importantly a break above resistance at 1.5974 to confirm the bottom for a new rally towards 1.6203 and higher towards 1.6285.
Trading recommendation:
We are long EUR from 1.5925 with stop placed at 1.5740. If you are not long EUR yet, then buy upon a break above 1.5848 with the same stop at 1.5740.
