Today's Support and Resistance levels:
R3: 1.6798
R2: 1.6735
R1: 1.6689
Current Spot: 1.6655
S1: 1.6626
S2: 1.6581
S2: 1.6522
Technical summary:
We did see a break above resistance at 1.6750, which confirms the uptrend. However, the following correction is deeper that would be expected. That could imply two things, that a series of waves one's and two's is developing and the other is, that a leading diagonal is developing, but no matter what we should ultimately see a continuation higher.
Short term we expect support at 1.6626 will protect the downside for a break above resistance at 1.6689 for a new rally towards 1.6798 and higher towards 1.7071 and 172.39 as the next major upside targets. Only an unexpected break below 1.6522 will invalidate our bullish call and indicate more downside pressure.
Trading recommendation:
Stay long from 1.6520 and keep your stop at break-even. If you are not long in EUR yet, then buy after a break above 1.6689 with the same stop at 1.6520.
