Today's Support and Resistance levels:

R3: 1.5970

R2: 1.5924

R1: 1.5894

Current spot: 1.5871

S1: 1.5857

S2: 1.5814

S3: 1.5770

Technical overview:

There was no time for red wave ii to develop into a deeper correction and the break above the top of red wave i indicated, that red wave iii was developing. We should soon see a clear break above the base-channel resistance line, which will confirm that red wave iii is developing. As red wave i wave a leading diagonal, we should expect red wave iii to extend and the first extension target will come in at 1.6481, where red wave iii will be 1.618 times red wave i. In the short term we could see a decline to 1.5770, but from there or upon a break above 1.5924 we should see the next very powerful rally higher towards 1.5970 and 1.6023.

Trading recommendation:

Due to the shallow correction in red wave ii we missed our buying opportunity, but we will place a new EUR buy order at 1.5790 or buy upon a break above 1.5924 (one order cancels the other). We will place our stop at 1.5615.