Today's support and resistance levels:
R3: 1.6161
R2: 1.6137
R1: 1.6115
Current spot: 1.6099
S1: 1.6090
S2: 1.6079
S3: 1.6056
Technical summary:
The correction from 1.6216 has been unfolding according to our expectation. We are still looking for a decline to 1.6056 to end red wave ii and set the stage for the next impulsive rally in red wave iii higher to 1.6446 on the way towards 1.6800. Short term, only an unexpected break above 1.6191 will indicate that red wave ii ended early and red wave iii is developing.
Trading recommendation:
We will buy EUR at 1.6065 with a stop at 1.6000 or upon a direct break above 1.6191.
