Today's Support and Resistance Levels:
S1: 1.5830 R1: 1.5862
S2: 1.5798 R2: 1.5888
S3: 1.5772 R3: 1.5911
Technical Overview:
In the previous article we talked about the situation when series of waves one and two are developing. That scenario is still possible. But we should also consider the capability of building of a Leading Diagonal. The outcome will be the same. There will be a powerful rally towards the upside once wave three takes hold. But if it is the Leading Diagonal we will see a correction towards the 1.5750 - 1.5761 area first. Here a powerful wave three should begin. However, the Leading Diagonal allows an even deeper correction, but we expect that there will be enough a correction towards 1.5750 - 1.5761. The only thing we cannot allow is a break below 1.5700 as that would invalidate an impulsive rally. Whatever type of impulsive rally we have seen from 1.5700, a series of waves one and two or a Leading Diagonal, we should see a powerful wave three is taking us much higher towards at least 1.6215 soon. However, we expect it will take us even higher.
Trading Recommendation:
You should be long EUR from 1.5725 with a stop at 1.5710. If you are not long EUR already you should buy at 1.5765 or upon a break above 1.5890.
