Today's Support and Resistance levels:
S1: 1.5659 R1: 1.5709
S2: 1.5593 R2: 1.5738
S3: 1.5550 R3: 1.5784
Technical overview:
We finally saw the daily close below 1.5685, which is the first close below the channel support line since the low at 1.4966 in early August 2012. This should open for a continuation towards the expanded triangle support line near 1.5200. The absolute minimum we expect to see is a break below 1.5390, which marked the bottom of wave c. This monster correction seems to come to an end soon, but we are not there yet. In the short term we expect support at 1.5727 to protect the upside for the next decline towards supports at 1.5593 and 1.5550.
Trading recommendation:
We are short EUR from 1.5915 and will move our stop lower to 1.5790. If you are not short EUR already, then sell near 1.5727 or upon a break below 1.5659 (one order done cancels the other) with the same stop.
