Today's support and resistance levels:
R3: 1.6160
R2: 1.6132
R1: 1.6107
Current spot: 1.6075
S1: 1.6061
S2: 1.6044
S3: 1.6025
Technical summary:
Now, we have seen the expected test of support at 1.6056 (the low has been 1.6061). Currently, we will be looking for a break above minor resistance at 1.6107 as the first indication, that red wave ii is over, while a break above 1.6160 is needed to confirm, that red wave ii is indeed over and red wave iii higher towards at least 1.6446 is developing. However, as long as minor resistance at 1.6106 is protecting the upside, we will have to allow for a move closer to 1.6056 and maybe even slightly lower to 1.6025, but it's not necessary.
Trading recommendation:
We bought EUR at 1.6065 and has placed our stop at 1.6000. If you are not long in EUR yet, buy minding a break above 1.6107 with the same stop at 1.6000.