Today's Support and Resistance levels:
R3: 1.6326
R2: 1.6275
R1: 1.6219
Current spot: 1.6137
S1: 1.6102
S2: 1.6063
S3: 1.6030
Technical summary:
The break above resistance at 1.6086 yesterday was very frustrating and forced a change of the large count. The new count shows that we are looking at a combination of corrections. The first correction was an expanded flat that ended 1.6073 in mid-September 2013. This first three wave correction was followed by an equal complex X-wave and we are currently in the later part of a zig-zag decline. This zig-zag has unfolded in wave A from 1.6996 to 1.6214 and was followed by yet another complex wave B to 1.6787, and we are currently in wave iv of the final C wave lower. This wave iv is expected to end close to resistance at 1.6219 the 50% corrective target of wave iii and should be followed by the final decline towards 1.5530.
Trading recommendation:
Sell EUR at 1.6175 with a stop at 1.6275 or sell upon a break below support at 1.6102 with a stop at 1.6170.
