The rally of 1.4554 low does look impulsive. It is the first indication that a long-term bottom is in place. The expected rally higher should last for many weeks and months. It should ultimately bring the prices above 1.7274 but let's take this in baby-steps and look for a break above minor resistance at 1.4919 as the next good indication that a firm bottom is in place. In the short run, we expect support at 1.4630 to protect the downside for a break above 1.4779 and more importantly above 1.4817 confirming the test of resistance at 1.4919.
Trading recommendations:
We are long EUR from 1.4725 and will keep our stop at 1.4550 for now. If you are not long EUR yet, the buy near 1.4630 with the same stop at 1.4550.
The material has been provided by InstaForex Company - www.instaforex.com
