Today's Support and Resistance levels:
R3: 1.6471
R2: 1.6423
R1: 1.6361
Current Spot: 1.6295
S1: 1.6271
S2: 1.6212
S3: 1.618
Technical summary:
Wave ii has broken below strong support at 1.6319, which has opened for a deeper decline towards 1.6271 and maybe even 1.6212. We have to remember that the second waves are allowed to correct 100% of the first wave, but never ever can break below the start of the first wave, which we think is at 1.6081. Once wave ii is in place, we should expect a strong rally as wave iii unfolds. Normally, wave iii will be the longest and strongest of the impulsive waves. To confirm that wave iii is developing, we need a break above 1.6422 and more importantly a break above 1.6471 for a new rally towards 1.6726 and higher to 1.7424.
Trading recommendation:
Stay long in EUR from 1.6325 with your stop at 1.6075. If you are not long in EUR, then buy after a break above 1.6422 and place your stop at 1.6081 too, expecting to raise your stop soon.
