R3: 1.6848 (bottom of wave i – Should not be broken)
R2: 1.6801
R1: 1.6754
Current Spot: 1.6740
S1: 1.6705
S2: 1.6665
S3: 1.6600
Technical overview:
We have seen the expected minor rally higher. It went a little higher than our expected 1.6789 (the top has been at 1.6801), but that does not damage our larger count. We are now looking for a break below 1.6705 and, more importantly, a break below 1.6665 to confirm the next decline towards 1.6600 and 1.6541. Once we reach support at 1.6541 we should expect a new correction higher, but this correction should stay well below 1.6801. For now, we are focused on the downside and a break below 1.6705 as the first indication, that a decline to 1.6541 is in progress.
Trading recommendation:
We sold EUR at 1.6780 and will keep our stop at 1.6850 for now. We will take profit on our short position at 1.6550. If you do not have short EUR positions already, then sell at a break below 1.6705 with the same stop at 1.6850.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s support and resistance levels:
R3: 1.6848 (bottom of wave i – Should not be broken)
R2: 1.6801
R1: 1.6754
Current Spot: 1.6740
S1: 1.6705
S2: 1.6665
S3: 1.6600
Technical overview:
We have seen the expected minor rally higher. It went a little higher than our expected 1.6789 (the top has been at 1.6801), but that does not damage our larger count. We are now looking for a break below 1.6705 and, more importantly, a break below 1.6665 to confirm the next decline towards 1.6600 and 1.6541. Once we reach support at 1.6541 we should expect a new correction higher, but this correction should stay well below 1.6801. For now, we are focused on the downside and a break below 1.6705 as the first indication, that a decline to 1.6541 is in progress.
Trading recommendation:
We sold EUR at 1.6780 and will keep our stop at 1.6850 for now. We will take profit on our short position at 1.6550. If you do not have short EUR positions already, then sell at a break below 1.6705 with the same stop at 1.6850.
The material has been provided by InstaForex Company – www.instaforex.com
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