Today's Support and Resistance levels:
R3: 1.6460
R2: 1.6416
R1: 1.6331
Current Spot: 1.6300
S1: 1.6286
S2: 1.6227
S3: 1.6174
Technical overview:
With the break below 1.6390 we knew that the rally from 1.6390 to 1.6688 was "only" an x-wave and that a decline to 1.6249 was to be expected. We now have a triple zig-zag correction from the top at 1.7111 and it is not possible to have more than a triple correction, therefore once this last zig-zag correction is over, we will see a powerful rally higher. We will now be looking for signs that a bottom is in place and the first sign will be a break above resistance at 1.6331. However, we will need a break above 1.6552 to confirm the bottom and that a new rally towards at least 1.7111 is developing. That said, as long as the resistance at 1.6331 protects the upside, we could see a bit more downside towards 1.6174 before the next rally higher sould take over.
Trading recommendation:
Our stop was hit for a very small loss and we are now looking for a new buying opportunity: We will buy EUR at 1.6185 or upon a break above 1.6331 with a stop at 1.6100.
