Today's Support and Resistance levels:
R3: 1.6499
R2: 1.6469
R1: 1.6438
Current spot: 1.6428
S1: 1.6392
S2: 1.6358
S3: 1.6320
Technical summary:
The corrective cycle from 1.6238 has become more complex than firstly expected. We do however think that a top is close and the next impulsive decline ready to take over again. However, to confirm that the next impulsive decline is developing, we need a break below support at 1.6320. As long as support at 1.6320 holds firm and protects the downside, we could see a little more upside towards 1.6473, but at no point a break above resistance at 1.6499 can be allowed.
A break below 1.6320 will call for a decline towards 1.6237 on the way lower towards 1.6127.
Trading recommendation:
We booked a nice profit at 1.6340. We will sell EUR again here at 1.6428 with a stop at 1.6505.
