Today's Support and Resistance levels:
R3: 1.6437
R2: 1.6368
R1: 1.6315
Current Spot: 1.6265
S1: 1.6222
S2: 1.6173
S3: 1.6089
Technical summary:
Wave i ended earlier as we expected. We expected wave i to end near 1.6565, but it was obviously not the case. We are currently hoovering around the 50% retracement target of wave i, which comes in at 1.6263 and could see a deeper correction towards the 61.8% retracement target at 1.6222, this corrective target will ideally protect the downside, but we will have to remember that the second waves are allowed to correct 100% of the first wave, but it can never ever break below the starting point of wave i.
In the short term it will take a break above 1.6296 and more importantly a break above 1.6315 to confirm that wave ii is over and wave iii is developing for a rally higher towards at least 1.6565 and possibly even higher. In the longer term we are looking for a rally above 1.7274.
Trading recommendation:
Stop at 1.6255 was hit for a small loss. Re-buy EUR upon a break above 1.6315 and place your stop at 1.6215.
