Today's support and resistance levels:
R3: 1.5814
R2: 1.5796
R1: 1.5778
Current spot: 1.5768
S1: 1.5758
S2. 1.5742
S3: 1.5730
Technical summary:
Wave 2 is unfolding as expected. We are looking for a decline to 1.5707 as the first target. At 1.5707, we will not find the 38.2% corrective target of the rally from 1.5398 to 1.5898, but also wave iv to some degree, which normally represents strong support. Therefore, we should expect at least a bounce from 1.5707. An unexpected clear break below 1.5707 will call for a continuation lower to 1.5598.
Trading recommendation:
We will buy EUR at 1.5715 with a stop at 1.5660.
