Today's support and resistance levels:
S1: 1.5639 R1: 1.5677
S2: 1.5592 R2: 1.5712
S3: 1.5530 R3: 1.5752
Technical overview:
Our call for a minor correction to 1.5849 before the next powerful decline worked perfectly. We saw a move to 1.5851 (just two very small pips above our ideal target) before the floor was dragged away for a powerful decline. In the short term, we are looking for minor support at 1.5637 to protect the downside for a move closer to 1.5752 before the next powerful decline sets in for a move lower towards 1.5300. In the short term, a break above 1.5671 will confirm the minor rally to 1.5752. That said, we must accept the possibility of a direct break below 1.5592 leaving us with only a sub-normal correction, before the next decline towards 1.5300.
Trading recommendation:
We sold EUR at 1.5840 yesterday and will lower our stop to breakeven. If you do not have short positions on EUR, then sell at 1.5740 with the same stop.
