Today's Support and Resistance Levels:
S1: 1.5962 R1: 1.6042
S2: 1.5922 R2: 1.6103
S3: 1.5843 R3: 1.6159
Technical Overview:
We did not see a break above resistance at 1.6155 and as support at 1.6075 was taken out, that raises the risk of an even deeper correction towards 1.5962 and possibly even 1.5922 before the next rally higher can be expected. That said, as we are in wave iii this correction could suddenly terminate short of the ideal target for the next swing higher. However, to confirm that the correction from 1.6218 is over we need a break above 1.6103, and more importantly 1.6160. A break above resistance at 1.6160 will call for a new rally higher towards 1.6218 on the way to 1.6387.
Trading Recommendation:
We are long EUR from 1.6085 with a stop at 1.6000. If our stop is hit, we will place a new EUR-buy order at 1.5965 or at 1.6165 (one order done cancels the other). Stop will be placed at 1.5900.