Today's Support and Resistance Levels:
R3: 1.6659
R2: 1.6623
R1: 1.6577
Current Spot: 1.6537
S1: 1.6517
S2: 1.6470
S3: 1.6443
Technical Summary:
We have tested important support at 1.6569 and have even broken it slightly. The important question now is whether we are ready to challenge the upside again or the downside pressure is to strong. A break above minor resistance at 1.6577 will be the first indication that a bottom could be in place, but to confirm the bottom a break above 1.6659 is needed. If however, the downside pressure continues to force prices down, it will take a break below 1.6443 to invalidate our bullish preferred count and instead make our alternate count (see below) the preferred count.
Trading Recommendation:
Our idea of selling EUR again at 1.6785 was correct, but we place the stop a little too close and was stopped out at 1.6820. We will buy EUR here at 1.6537 and place our stop+revers at 1.6440 in case our preferred count proves to be wrong.
