Today's Support and Resistance Levels:
S1: 1.5550 R1: 1.5600
S2: 1.5505 R2: 1.5650
S3: 1.5470 R3: 1.5709
Technical Overview:
With the break below our invalidation point we have changed our entire count for the rally since the 1.5390 low. Instead of a series of waves one and two the only impulsive count, that allows a overlapping structure is a leading diagonal, which marks wave i. At the moment we are in wave ii, which has already exceeded our target at 1.5565. We should expect a slightly lower low for wave ii closer to 1.5500. Once this wave ii correction is over we should see a new powerful rally higher towards 1.5927 as the first major target, but in the long term we are still expecting much higher levels. At no point can a break below 1.5390 be accepted, as it will invalidate our larger count.
Trading Recommendation:
Our stop was hit for a small loss yesterday. However, we will buy EUR again at 1.5510 with a stop at 1.5385.