Today's Support and Resistance levels:
R3: 1.7023
R2: 1.6982
R1: 1.6937
Current Spot: 1.6876
S1: 1.6825
S2: 1.6789
S3: 1.6740
Technical overview:
We saw red wave ii of black wave v end at 1.6615 yesterday and as it would be expected of red wave iii, it was very explosive. However, we expect that it was only the first part of red wave iii and that we should soon see this rally higher continue towards 1.7109 and higher towards 1.7320. In the short term we are looking for support at 1.6810, which will ideally protect the downside for the next impulsive move higher towards resistance at 1.7109.
Trading recommendation:
We are long EUR from 1.6450 and will move our stop higher to 1.6610. If you are not long EUR already, then buy near 1.6810 or upon a break above 1.6937 (one order done cancels the other) with the same stop at 1.6610.