Today's Support and Resistance levels:
S1: 1.5620 R1: 1.5676
S2: 1.5584 R2: 1.5720
S3: 1.5550 R3: 1.5771
Technical overview:
It was clear that we needed to fill the gap and now when it is more or less filled we should be looking for a powerful decline below 1.5584 soon. As minor wave ii of red wave C was an expanded flat we should expect an extended wave iii down, which will call for a decline to 1.5312 and if this is the case we should expect the final wave v of red wave C to end close to our ideal target at 1.5200. In the short term we are looking for resistance in the 1.5691 - 1.5708 area to protect the upside for a break below 1.5620 and, more importantly, below 1.5584 to confirm the decline towards 1.5312.
Trading recommendation:
We are short EUR from 1.5655 with a stop at 1.5920. Upon a break below 1.5584 we will move our stop down to 1.5775. If you are not short EUR already, then sell at 1.5700 or upon a break below 1.5634 with the same stop.
