Today's Support and Resistance levels:

R3: 1.6560

R2: 1.6496

R1: 1.6397

Current spot: 1.6314

S1: 1.6291

S2: 1.6253

S3: 1.6214

Technical summary:

We were looking for a wave 2 correction towards 1.6445, but it has extended lower and is currently testing support at 1.6290. The downside is limited from here and under no circumstances should we see a break below the start of wave 1 at 1.6252. In the short term we will be looking for a break above resistance at 1.6397 as the first good indication that wave 2 is over and wave 3 higher towards 1.7141 is developing. Only a break below the start of wave 1 at 1.6252 will invalidate our bullish count, but even if we see a break below 1.6252, the downside potential should be limited.

Trading recommendation:

We are long in EUR from 1.6510 with stop placed at 1.6210. If you are not long in EUR yet, then buy after a break above resistance at 1.6397.