Today's Support and Resistance Levels:
S1: 1.5860 R1: 1.5918
S2: 1.5838 R2: 1.5967
S3: 1.5788 R3: 1.6052
Technical Overview:
As we depicted above on Friday and yesterday, we saw to possible options for red wave i, which began at 1.5700. We could either have seen a series of wave one and two or it could be a Leading Diagonal. We think it is the best option to go with the Leading Diagonal option. However, the outcome in both cases would have been the same; a powerful rally in red wave iii of black wave iii. This wave is normally the strongest and most determent wave. It tends to be almost vertical as it develops. In the very short term we could see a minor decline towards the 1.5830 - 1.5850 area before the next rally higher towards 1.6062 starts. But in the long term we should see much higher levels.
Trading Recommendation:
You should be long EUR from 1.5725. Move your stop higher to 1.5760. If you are not long EUR already you should buy at 1.5855 with the same stop.
