Today's Support and Resistance Levels:
S1: 1.5700 R1: 1.5810
S2: 1.5672 R2: 1.5902
S3: 1.5633 R3: 1.5974
Technical Overview:
The decline from 1.5899 has become deeper that initially anticipated, but we must count for a very deep correction in red wave ii. A deep correction is very common in second waves and they often tend to be of zig-zag shape as they gather momentum for a powerful move to the upcoming wave three.
Until now we have seen a perfect 61.8% correction of red wave i, but we should count for a slightly deeper correction towards the 70.7% corrective target. In the currency world this is a very common corrective target. The 70.7% comes at 1.5672. The break above 1.5810 will indicate that the correction is over and a new rally higher has begun. The first target for red wave iii is at 1.6230.
Trading Recommendation:
If you are not long EUR already, you could buy at 1.5685 or upon a break above 1.5810 (one order cancels the other). Stop should be placed at 1.5575.
