Today's support and resistance levels:
S1: 1.5788 R1: 1.5832
S2: 1.5750 R2: 1.5878
S3: 1.5718 R3: 1.5933
Technical overview:
We are still looking for resistance at 1.5832 and more importantly resistance at 1.5878 to protect the upside for a break below support at 1.5767 and more importantly support at 1.5718, which will call for a test of the triangle support line at 1.5600. A break below the support line will open up the downside for the final thrust lower towards 1.5390 and likely even lower towards 1.5200 before the entire correction from early September 2012 finally comes to an end. That said, we should be aware that e-waves of triangle can fall short of the ideal targets and a break above 1.5878 will be the first warning that this is the case here.
Trading recommendation:
We short EUR from 1.5858. We will place a stop+reverse our short position to a long EUR position at 1.5890. For now, we will let the profit ride. If you do not have short positions on EUR yet, then sell at a break below 1.5767 with the same stop.