Today's support and resistance levels:
R3: 1.6128
R2: 1.6088
R1: 1.6047
Current spot: 1.6032
S1: 1.6016
S2: 1.5978
S3: 1.5949
Technical summary:
The correction from 1.6446 is becoming extremely deep. We are currently back-testing the base-channel resistance-line, which is now acting as support. Ideally this support near 1.5978 will protect the downside for a break above 1.6082 and more importantly a break above 1.6243 to confirm the next rally higher to 1.6446 on the way towards 1.6836. Only a break below support at 1.5949, will change the current count, but only to an even more bullish long-term count.
Trading recommendation:
Our stop at 1.6100 was hit for a nice profit. We will re-buy EUR at 1.6000 or upon a break above 1.6088 with a stop at 1.5800.
