Our long-term chart shows that a long-term bottom was found with the test of 1.3860 in April 2015 and more upside towards 1.9844 is expected. The 1.9844 target marks both the 50% corrective target of the decline from 2.5804 to 1.3860, but also the Diamond bottom target.
Short-term, it was a bit disappointing to see a break below minor support at 1.6669, which complicated, the short-term count somewhat, but it does in no way alter our long-term view of much more upside to come in the weeks/months ahead.
Short-term, we expect support in the 1,6501 - 1.6605 area, will be able to protect the downside for a new rally above 1.6764 indicating renewed strength for a rally towards 1.7062 and above.
R3: 1.6902
R2: 1.6828
R1: 1.6764
Pivot: 1.6720
S1: 1.6694
S2: 1.6652
S3: 1.6606
Trading recommendation:
We will buy a break above 1.6764 if done our stop will be placed at 1.6600.
