Today's Support and Resistance levels:
R3: 1.6471
R2: 1.6423
R1: 1.6349
Current Spot: 1.6320
S1: 1.6289
S2: 1.6270
S3: 1.6246
Technical summary:
The rally from the 1.6246 low observed yesterday does have a clear impulsive character, but to confirm that we have seen an important low at 1.6246, we would like to see support at 1.6270 protecting the downside for a break above 1.6349, which would call for a powerful and extended rally higher towards at least 1.6423 and likely even higher towards 1.6471 on the way higher towards 1.6726 and higher.
That said, we could risk with a deeper decline closer to 1.6246, as second waves are allowed to correct the whole first wave, but it can never break below the starting point of the first wave.
Trading recommendation:
Stay long in EUR from 163.25 with your stop at 1.6240. If you are not long in EUR, then buy EUR close to 1.6270 or upon a break above 1.6349 with the same stop at 1.6240.
