Today's Support and Resistance levels:
R3: 1.5650
R2: 1.5615
R1: 1.5594
Current spot: 1.5559
S1: 1.5545
S2: 1.5505
S3: 1.5478
Technical summary:
All odds favor wave 2 being in place at 1.5505 and we should now be looking for a break above minor resistance at 1.5610 as the first strong indication that this is the case. However, a break above resistance at 1.5650 is needed to confirm that wave 2 is indeed in place for a new strong rally in wave 3 higher to at least 1.5780 and likely even higher to 1.5951.
Only unexpected break below 1.5505 will question the expected rally, but it will take a break below 1.5478 to invalidate our bullish count. Even if the unlikely event of a break below 1.5478 should happen, the downside potential should be very limited.
Trading receommendation:
We are long in EUR from 1.5585 with stop placed at 1.5470. If you are not long in EUR yet, then buy near 1.5535 or upon a break above 1.5610 with the same stop at 1.5470.
