Today's Support and Resistance levels:
R3: 1.6747
R2: 1.6673
R1: 1.6578
Current Spot: 1.6505
S1: 1.6477
S2: 1.6412
S3: 1.6342
Technical summary:
The wave 1 ended little earlier than we expected. Wave v became equal in length to wave v, which is a common relationship. With the break below 1.6574 we knew that the wave 1 was in place and the wave 2 was developing. We will be looking for the wave 2 towards the bottom of the wave iv at 1.6477. In the short term, we will wait for resistance at 1.6567; 1.6587 and 1.6606 to protect the upside for the expected decline towards 1.6477. However, we have to be aware that the second wave tends to correct a large portion of wave one, which means the expected correction could be deeper and reach 1.6342 before the wave 2 is done and the wave 3 higher begins.
Trading recommendation:
Our stop at 1.6570 was hit for a very nice profit. We will buy EUR again at 1.6485 with a stop at 1.6250 expecting to raise the stop soon.