Today's Support and Resistance Levels:

S1: 1.5700                    R1: 1.5810

S2: 1.5672                    R2: 1.5902

S3: 1.5633                    R3: 1.5974

Technical Overview:  

The decline from 1.5899 has become deeper that initially anticipated, but we must count for a very deep correction in red wave ii. A deep correction is very common in second waves and they often tend to be of zig-zag shape as they gather momentum for a powerful move to the upcoming wave three. 

Until now we have seen a perfect 61.8% correction of red wave i, but we should count for a slightly deeper correction towards the 70.7% corrective target. In the currency world this is a very common corrective target. The 70.7% comes at 1.5672. The break above 1.5810 will indicate that the correction is over and a new rally higher has begun. The first target for red wave iii is at 1.6230.

Trading Recommendation:

If you are not long EUR already, you could buy at 1.5685 or upon a break above 1.5810 (one order cancels the other). Stop should be placed at 1.5575.

Performed by Analytical expert: Torben Melsted
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