Today's Support and Resistance Levels:
S1: 1.5560 R1: 1.5635
S2: 1.5498 R2: 1.5682
S3: 1.5439 R3: 1.5754
Technical Overview:
With the break below important support at 1.5453 it had to change the overall structure of the correction since the 1.5905 high (wave 1). Breaking below 1.5453 the rate could not have begun a new impulsive rally on the upside, but the pair is still in a corrective phase. The corrective pattern we are looking at is an expanded flat correction, as wave B broke above the starting point of wave A and wave C has now broken below the ending point of wave A. Normally there will be a Fibonacci relationship between wave A and Wave C. We do expect that wave C will be 1.618 time the length of wave A, which should take us down to 1.5325, where we also will have corrected 61.8% of wave 1.
We are currently at the very last part of red wave iv and should see renewed downside pressure for a break below 1.5549 soon and, more importantly, 1.5469, confirming that red wave v is under way down to 1.5325.
Trading Recommendation:
We will sell EUR here at 1.5615 with a stop at 1.5750 and take profit at 1.5350.