Today's support and resistance levels:
R3: 1.5900
R2: 1.5868
R1: 1.5812
Current spot: 1.5776
S1: 1.5776
S2: 1.5745
S3: 1.5730
Technical summary:
The expected extension higher in wave iii is unfolding nicely. We are sitting just below the first extension target at 1.5812, which might be able to hold the rise back for a short term. However, looking at the structure, we expect this rally to continue higher to 1.5900 and possibly even higher to 1.6046. Short-term support at 1.5776 will likely to protect the downside, but we could see a move slightly lower to 1.5745. This support should ideally protect the downside for the next rally higher to 1.5812.
Trading recommendation:
We are long in EUR from 1.5525 and will move stop higher to 1.5695. If you are not long in EUR yet, then buy EUR here with the same stop at 1.5695.
