Today's Support and Resistance levels:

R3: 1.6406

R2: 1.6356

R1: 1.6314

Current Spot: 1.6278

S1: 1.6272

S2: 1.6219

S3: 1.6173

Technical summary:

Important support at 162.19 has been tested and held firm, which leaves us lock inside this messy sideways consolidation. Have we begun a new impulsive rally higher from the 1.6071 low or was the rally from 1.6071 to 1.6515 red wave iv and red wave v lower towards 1.6071 and 1.5872 is ahead of us? At this point we think the two possibilities has a fifty-fifty percent chance and the deciding factor will be either a break above 1.6406 or a break below 1.6219. So for now it is just a waiting game...

Trading recommendation:

We do not like our short position from 1.6255 very much, but we will protect ourselves with a close stop stop lower to 1.6290 to minimize a possible loss. If our stop order is done we will place two new orders: 1 is a EUR-sell order at 1.6215 and 2: a buy order at 1.6410. One order cancels the other.