Today's Support and Resistance Levels:
S1: 1.5480 R1: 1.5545
S2: 1.5430 R2: 1.5600
S3: 1.5390 R3: 1.5650
Technical Overview:
We have seen a small rally since the 1.5463 low to 1.5526, but we need a break above minor resistance at 1.5543, and more importantly 1.5602 before we feel more confident that wave ii is over and a new powerful rally is developing. As long as resistance at 1.5545 protects the upside we must allow for a deeper correction closer to the invalidation point at 1.5390, but at no point can we go below as that would tilt the picture towards a more bearish count. That said, we do not expect the all important support at 1.5390 to yield at any time and it is more focused on a break above 1.5543 and 1.5602 for a rally higher towards 1.5927 as the first major resistance.
Trading Recommendation:
We are long EUR from 1.5510 with a stop at 1.5385. If you are not long EUR already, then buy a break above 1.5543 with the same stop.