Today's Support and Resistance Levels:
S1: 1.5937 R1: 1.6009
S2: 1.5908 R2: 1.6061
S3: 1.5868 R3: 1.6127
Technical Overview:
We do not have much to add to yesterday’s comments. However, our preferred bullish scenario shows that a minor leading diagonal might be developing. This was the same impulsive structure we saw as red wave I was developing. The observation is correct, so we should soon see a powerful rally higher towards 1.6061 and likely also to 1.6127. The flip side is of course a break below 1.5908 that would invalidate the bullish option and call for a more complex correction development from the 1.6061 high.
Trading Recommendation:
You should be long EUR from 1.5725 with a stop at 1.5900. If you are not long EUR already buy at 1.5937 or a break above 1.6010 (one order cancels the other) with the same stop.
