Today's Support and Resistance levels:
R3: 1.6924
R2: 1.6877
R1: 1.6807
Current Spot: 1.6789
S1: 1.6747
S2: 1.6674
S3: 1.6625
Technical summary:
As we said yesterday a break below 1.6807 will force us to change our count slightly. A break below 1.6807 told us, that blue wave v of the expanding diagonal ended at 1.6996 and we should now be looking for a correction towards 1.6569, before the next rally can be expected.
However, we have a bearish alternate count (see the chart below), which we have to consider as a serious possibility. We might only just have seen the top of a very complex b wave at 1.6996 and wave c lower is now developing for a decline towards 1.5793.
No matter which of the two scenarios, that proves to be correct, we should be looking for a decline over the coming days.
Trading recommendation:
Our long position was stopped out at 1.6800 with a nice profit. We will sell EUR at 1.6785 or upon a break below 1.6748 with a stop at 1.6840.
Happy New Year and a Prosperous 2014!
