Today's support and resistance levels:
S1: 1.5832 R1: 1.5866
S2: 1.5790 R2: 1.5918
S3: 1.5750 R3: 1.5945
Technical overview:
We have seen the expected move lower towards strong support at 1.5750. As can be seen in the chart above, the decline from 1.6359 is clearly corrective in character. Once this decline comes to an end, we will likely see a fast rally towards the upside. However, for now we should keep our focus on the downside for a move closer to 1.5750. In the short term, we will likely see a little rally towards 1.5918 before the next decline lower towards 1.5790 and 1.5750.
Trading recommendation:
We short EUR from 1.5985 and will lower our stop to break-even. If you have not sold EUR yet, sell close to 1.5918 with the same stop.