We have seen a strong rally from the 1.5730 low. This could mean that a long-term bottom is in place. We only saw a slightly lower low at 1.5730, but we knew that we where in the very last stages of the decline from 1.7274 and it only was a question of time before the bottom would be found. As long as minor resistance at 1.5905 protects the upside, we still could see one last decline towards the ideal target at 1.5653, but with the low set at 1.5730, it is not necessary.
A break above resistance at 1.5980 and more importantly a break above 1.6179 will confirm that the bottom is in place and a new powerful rally is unfolding.
Trading recommendation:
We bought EUR at 1.5858 and will place our stop at 1.5575. If you are not long in EUR yet, then buy EUR near 1.5810 with the same stop at 1.5575 expecting to move it higher soon.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 1.6059
R2: 1.5985
R1: 1.5905
Current spot: 1.5895
S1: 1.5834
S2: 1.5785
S3: 1.5730
Technical summary:
We have seen a strong rally from the 1.5730 low. This could mean that a long-term bottom is in place. We only saw a slightly lower low at 1.5730, but we knew that we where in the very last stages of the decline from 1.7274 and it only was a question of time before the bottom would be found. As long as minor resistance at 1.5905 protects the upside, we still could see one last decline towards the ideal target at 1.5653, but with the low set at 1.5730, it is not necessary.
A break above resistance at 1.5980 and more importantly a break above 1.6179 will confirm that the bottom is in place and a new powerful rally is unfolding.
Trading recommendation:
We bought EUR at 1.5858 and will place our stop at 1.5575. If you are not long in EUR yet, then buy EUR near 1.5810 with the same stop at 1.5575 expecting to move it higher soon.
The material has been provided by InstaForex Company – www.instaforex.com
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