Today's Support and Resistance Levels:
S1: 1.5615 R1: 1.5658
S2: 1.5598 R2: 1.5705
S3: 1.5578 R3: 1.5751
Technical Overview:
The correction from the 1.5899 high has become deeper than first expected and it adds concern that we have broken below the base support-line channel, but having reviewed the internal wave structure, we still think that we are in a new impulsive sequence and that this red wave 2 should find its end very close to 1.5615 for the next powerful rally higher towards at least 162.10, but as we will be in wave three of three it could easily extend further.
The risk will be a break below 1.5578, which will invalidate the immediately bullish case and tell us that the black wave 2 is still ongoing, however we could suggest that the break would be only to the 1.5570 - 1.5574 area before black wave 2 ends. This is not our preferred view, but the risk scenario.
Trading Recommendation:
If you are not long EUR already with a stop at 1.5575 then buy at 1.5620 with a low risk stop at 1.5565. If you have bought EUR already, you should lower you stop from 1.5575 to 1.5565. Normally, we think it is a bad habit to lower once stop, but doing it with only 10 pips does make sense in this case.
