Today's Support and Resistance Levels:
R3: 1.6548
R2: 1.6508
R1: 1.6461
Current Spot: 1.6447
S1: 1.6411
S2: 1.6366
S3: 1.6285
Technical Summary:
With the break below important support at 1.6443 we knew that the expanding leading diagonal could not be the correct count. Therefore, we were forced to adopt a much more negative count. This count had wave C of an expanded flat correction ending at 1.6996 and wave C lower is now developing. The target for this C wave is at 1.5794, where wave C will equal wave A in length.
Short-term we will be looking for minor resistance at 1.6461 protecting the upside for a decline towards 1.6285 and likely even closer to 1.6230 before a correction towards 1.6461.
Trading Recommendation:
Our stop + revers at 1.6440 was taken out and we are now short EUR at 1.6440 and will place our stop at 1.6470 and take profit at 1.6240. If you are not short already, then sell EUR upon a break below 1.6411 with the same stop at 1.6470.
