Today's Support and Resistance levels:
R3: 1.7189
R2: 1.7113 (New top)
R1: 1.7050
Current Spot: 1.7004
S1: 1.6970
S2: 1.6918
S3: 1.6881
Technical overview:
We saw a new top at 1.7113 yesterday, so from an Elliott Wave Perspective we now have a five wave rally since the 1.5080 low. That does not mean we think this rally is over, but we are for sure moving closer to the point in time, where we should expect a bigger correction. As an minimum for this rally, we expect to see 1.7162, where black wave v will be 38.2% of the distance traveled from the bottom of black wave i to the top of black wave iii. However, it is more likely that we will see a continuation higher towards 1.7400, where black wave v will be 50% of that distance and lastly it could move towards 1.7640, where black wave v will have traveled 61.8% of that distance. Which target is more likely? We think that the 1.7640 target is the most likely target, but from now on a top can be put in at any time.
Trading recommendation:
We are long EUR from 1.6450 and will move our stop higher to 1.6820 (protecting as much of our profit as possible). We will place our take profit + revers of the long EUR-position to a sold EUR-position at 1.7600. Any new buying should be handled with care.
The material has been provided by InstaForex Company - www.instaforex.com
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