Today's support and resistance levels:
R3: 1.5501
S2: 1.5489
S1: 1.5455
Current spot: 1.5444
S1: 1.5411
S2: 1.5384
S3: 1.5345
Technical summary:
We are still looking for evidence that a bottom has been reached. In early trading today, we saw a slightly different low at 1.5398. We still need a break above 1.5501 to give us the first good indication of a firm bottom being in place. A break above 1.5501 will call for a continuation higher to important resistance at 1.5706. It confirms above here that a long-term bottom is in place. However, as long as minor resistance at 1.5501 is able to protect the upside, we will have to respect the possibility of a move even slightly lower than 1.5398, but we still think the potential downside is limited.
Trading Recommendation:
We are long in EUR from 1.5425 with stop placed at 1.5385. If you are not long in EUR yet, then buy a break above 1.5455 with stop placed at 1.5385.
