Today's Support and Resistance Levels:
S1: 1.5891
R1: 1.5927
S2: 1.5857
R2: 1.6010
S3: 1.5840
R3: 1.6059
Technical Overview:
The fact that we have broken clearly above resistance at 1.5836 confirms that a new impulsive rally is building and it should be a matter of time before resistance at 1.6059 is challenged. Looking at the charts above in the long term it is important that we saw a close above the long-term resistance line in November. However, in the short term it is important that we currently is breaking above the base channel mid-line, which opens up for the next powerful rally higher towards the base channels resistance line, which currently is close to 1.6300. That said we expect to see much higher levels in the long term with the first major target being 1.6967. In the short term we should not see a break below 1.5787, and more importantly not below 1.5679.
Trading Recommendation:
You should be long EUR from 1.5800. Move stop up to 1.5785 leaving you with almost no risk. If you are long long EUR already you should buy near 1.5865 with the same stop.