Today's Support and Resistance Levels:
S1: 1.5987 R1: 1.6057
S2: 1.5965 R2: 1.6154
S3: 1.5943 R3: 1.6215
Technical Overview:
There was no time for small set-backs yesterday. This is quite common behavior for third waves. Corrections tend to be subnormal and the underlying trend (which in this case is clearly up) just keeps going in an almost vertical line. It does not mean that we do not have any clues where support and resistance levels are. Even this strong third wave follows the rules and guidelines of R.N. Elliott. It gives us a clear idea of what is going to happen. We may conclude that there is a problem with the third wave. It is the following one, extensions in this wave tend to be larger than we saw and there are a lot of them. It is one of the reasons we want to be on the right side of the trade once this wave gets going. It is well under way now. It is also in third waves we normally see a break above the base channels resistance line, which right now is at 1.6257 and rising, so we would not expect less than a rise above this resistance line. If we do not have any clues that wave 1 was an extended wave, in this case we do not have any signs of it. Therefore we expect at least wave 3 to be of similar size, which should at least take us up to 1.6386. But we will look for an extended wave 3, and therefore a target of 1.6967 will be more likely. As wave 3 progresses we will be able to say more about the possible ending point for this ongoing wave 3.
Trading Recommendation:
You should be long EUR from 1.5725. Move your stop up to 1.5860. If you are not long EUR already you should buy EUR at 1.5990 with the same stop.
