Today's Support and Resistance levels:
S1: 1.5629 R1: 1.5655
S2: 1.5584 R2: 1.5689
S3: 1.5550 R3: 1.5730
Technical overview:
The gap from 1.5776 down to 1.5704 has not been closed, that could be another sign of major underlying weakness here. That said we still need a clear break below 1.5600 to confirm that weakness. In the short term we are looking for resistance at 1.5673 and again at 1.5689. We would like to see one of these resistance levels protecting the upside for the clear break below 1.5600 for a continuation down towards at least 1.5390 and ideally close to 1.5200. However, if we break above 1.5689 we should expect more filling of the gap towards 1.5776.
Trading recommendation:
We sold EUR at 1.5655 with a 1.5920 stop. If you are not short EUR already then sell at 1.5765 or a break below 1.5637 with the same stop.
