Today's Support and Resistance Levels:
S1: 1.5745 R1: 1.5849
S2: 1.5715 R2: 1.5894
S3: 1.5654 R3: 1.5981
Technical Overview:
The correction which we observed yesterday became the shallow one. It argued for an extension higher towards the 1.5898 target and that is just what we have seen. Once we reached this target we saw the beginning of a more decent correction, which will likely take us down to the 1.5715 - 1.5745 area in wave iv. As wave ii was an expanded flat correction we need only to see a simple zigzag correction in wave iv due to the Elliott Wave Principles alternation rule. Once this wave iv is in place we should be looking for the next rally higher in wave v towards 1.5986, but and this is important, we have entered wave 3, which is normally the strongest wave and correction tend to be very small, therefore we should not be surprised to see just correction as the one we got yesterday and then on we go higher. Remember we are looking for this wave to reach 1.6969 in the long term.
Trading Recommendation:
You should be long EUR from 1.5545. Lift your stop to 1.5620. If you are not long EUR already wait and buy into the correction towards the 1.5715 - 1.5745 area with the same stop.
