The strong rally we saw yesterday is clearly what we would expect from wave three and is very encouraging of our view that a major long-term bottom is in place at 1.5730. Ideally support at 1.5991 will now protect the downside for the next rally higher towards strong resistance at 1.6179, and a break above here will confirm the bottom for a major long-term rally higher to above 1.7274. However, if minor support at 1.5991 should be broken, the next support to look for will be at 1.5966.
Trading recommendation:
Stay long in EUR from 1.5858 and move your stop higher to 1.5875. If you are not long in EUR yet, then buy near 1.5991 with the same stop at 1.5875.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 1.6136
R2: 1.6083
R1: 1.6043
Current spot: 1.6002
S1: 1.5991
S2: 1.5966
S3: 1.5923
Technical summary:
The strong rally we saw yesterday is clearly what we would expect from wave three and is very encouraging of our view that a major long-term bottom is in place at 1.5730. Ideally support at 1.5991 will now protect the downside for the next rally higher towards strong resistance at 1.6179, and a break above here will confirm the bottom for a major long-term rally higher to above 1.7274. However, if minor support at 1.5991 should be broken, the next support to look for will be at 1.5966.
Trading recommendation:
Stay long in EUR from 1.5858 and move your stop higher to 1.5875. If you are not long in EUR yet, then buy near 1.5991 with the same stop at 1.5875.
The material has been provided by InstaForex Company – www.instaforex.com
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