Today's support and resistance levels:
S1: 1.5324 R1: 1.5387
S2: 1.5308 R2: 1.5448
S3: 1.5260 R3: 1.5518
Technical overview:
Yesterday we did see a minor break below 1.5255, which under normal conditions would call for a new low below 1.5236, but the decline from 1.5395 stopped dead at 1.5252 and rallied in an impulsive manner. Therefore, we think that we saw a rare fifth failure, which is a sign of underlying strength. However, to confirm the fifth failure we need a break above 1.5395. In short term we expect minor support at 1.5324 to protect the downside for the next move higher towards 1.5405, from where we should expect a new setback towards 1.5324 before we get to see some real acceleration towards the upside and a rally towards 1.5611.
Trading recommendation:
We long EUR from 1.5350 and we move our stop higher to 1.5230. If you do not have long EUR positions, you should buy EUR close to 1.5324 with the same stop.