Today's Support and Resistance levels:
R3: 1.6435
R2: 1.6405
R1: 1.6385
Current Spot: 1.6354
S1: 1.6339
S2: 1.6298
S3: 1.6262
Technical summary:
The wave (iv) correction we where looking for is unfolding nicely. We expect support at 1.6340 to protect the downside for the last rally higher towards the 1.6405 -1.6415 area, before wave (v) lower will take over for a decline towards at least 1.6129 and maybe even lower towards 1.5962. Once wave (v) and iii is over expect a new correction, that will stay below 1.6405 in wave iv and then a final decline lower to 1.5793 to end the major correction that began at 1.7274 in late August 2013.
Trading recommendation:
We will sell EUR at 1.6405 or upon a break below 1.6297 (one order done cancels the other). Stop will be placed at 1.6580.В
