Today's Support and Resistance levels:
S1: 1.5278 R1: 1.5342
S2: 1.5246 R2: 1.5428
S3: 1.5227 R3: 1.5496
Technical overview:
It seems like we have seen the final bottom of the expanding triangle, which has been unfolding since September 2012, at 1.5227 just above our ideal target at 1.5209. The rally of 1.5227 has impulsive character and if this is the case we should ideally see support at 1.5279 protecting the downside for a break above 1.5342 for the next powerful rally higher towards at least 1.5409 and ideally higher towards 1.5623, as the next long-term rally starts to unfold. In the short term only a break below 1.5227 will invalidate our bullish scenario, but even if a break below 1.5227 is seen, the downside potential should be very limited.
Trading recommendation:
We are long EUR at 1.5315 with a stop at 1.4960. If you are not long EUR already, then we recommend you buying a break above 1.5342 with the same stop.