Today's Support and Resistance levels:
R3: 1.6275
R2: 1.6232
R1: 1.6180 - Important resistance as it's the top of wave a.
Current spot: 1.6148
S1: 1.6115
S2: 1.6083
S3: 1.6035
Technica summary:
We are still looking for wave d of the triangle to move lower towards 1.5933 before the final red wave e higher towards 1.6044 takes over. Once this triangle finally comes to an end, we will be looking for a thrust out of the triangle towards the downside for a decline closer to 1.5533 to end the major correction, which has dominated the picture since August 2013.
That said, we have to be aware that a break above important resistance at 1.6180 will invalidate the triangle concept and indicate that a bottom already is in place at 1.5766. A break above 1.6180 will call for a rally towards at least 1.6315 and above to confirm the bottom for a new powerful rally higher.
Trading recommendation:
Stay short in EUR from 1.6049 with your stop and revers placed at 1.6185. If you are not short in EUR yet, then sell here with the same stop and revers.
