Today's Support and Resistance levels:
R3: 1.6569
R2: 1.6509
R1: 1.6470
Current Spot: 1.6431
S1: 1.6408
S2: 1.6325
S3: 1.6225
Technical summary:
Since yesterday we have been moving sideways to down, but as important support at 1.6325 protects the downside I am still looking for a break above resistance at 1.6565, which will be the first good indication that this wave ii correction is over and a powerful wave iii is developing for a new rally to 1.7274 and higher towards 1.7780. That said, the risk is of cause that resistance at 1.6565 protects the upside for a break below the invalidation point at 1.6325, which will call the alternate count. In case of a break below 1.6325 the rally of this low to 1.7274 was only a b-wave of an expanded flat correction (see the chart below). The ideal target for the c wave of this expanded flat correction is at 1.6117, where wave ii will have corrected 50% of wave i and wave c of the expanded flat correction will be 1.382 times longer than wave a.
Trading recommendation:
Stay long EUR with a stop at 1.6320. If you are not long EUR already wait for a break above 1.6569 before buying EUR with the same stop at 1.6320.