Today's support and resistance levels:
R3: 1.5693
R2: 1.5660
R1: 1.5635
Current spot: 1.5624
S1: 1.5596
S2: 1.5572
S3: 1.5544
Technical summary:
The failure to break above resistance at 1.5800 and the break below support at 1.5646 was disappointing and indicates that an even more complex correction from 1.5899 is unfolding. However, we should still expect strong support near 1.5544 for a break above 1.5635 as the first indication, that a new impulsive rally might be developing. In the short run, we expect resistance at 1.5635 to protect the upside for the final spike lower to 1.5544 form where a new impulsive rally higher should be seen.
Trade recommendation:
We will rebuy EUR at 1.5550 with stop placed at 1.5390.