Today's Support and Resistance levels:
R3: 1.6719
R2: 1.6658
R1: 1.6608
Current spot: 1.6551
S1: 1.6479
S2: 1.6456
S3: 1.6399
Technical overview:
We are still looking for black wave iv down to the ideal target at 163.99. Since the top of black wave iii at 1.7109 we have seen a three wave decline to 1.6537, which was wave w and the following rally to 1.6913 was an x-wave and we are now in the second zig-zag lower. Of this second zig-zag we have seen the a-wave and we are currently in the b-wave and the question here is whether this b-wave ends at 1.6599 or we need a little more upside towards 1.6658 and maybe even to 1.6719 before the final c-wave lower to 1.6399 is ready to take over? We think that we would see a little more upside before the final c-wave lower can take over.
Trading recommendation:
We are short EUR from 1.6797 and will move our stop lower to 1.6615. Our take profit + revers is at 1.6450. If you are not short EUR already, then sell near 1.6719 with a stop at 1.6915.
