Today's support and resistance levels:
R3: 1.6009
R2: 1.5985
R1: 1.5975
Current spot: 1.5955
S1: 1.5950
S2: 1.5922
S3: 1.5914
Technical summary:
The rally of the 1.5680 low is clearly impulsive in character as we expected. This means wave iv ended at 1.5680 and wave v higher to 1.6446 on the way towards 1.6800 is developing. The rally of the 1.5680 will likely move sideways for the next couple of hours before the final rally closer to 1.6009 to end the first impulsive rally. From close to 1.6008, we will be looking for a correction towards 1.5882 and possibly even lower to 1.5839 before the next strong rally higher.
Trading recommendation:
We are long in EUR from 1.5720 and will move our stop higher to 1.5910 and place our take profit at 1.6000.
