Today's Support and Resistance levels:

R3: 1.6263

R2: 1.6187

R1: 1.6139

Current Spot: 1.6119

S1: 1.6077

S2: 1.6026

S3: 1.5966

Technical summary:

Trying to pinpoint the bottom for this wave C has been a real pain. We hit the cluster of supports at 1.6119, but also saw a break below this support, with 1.6077 being the low for now. Looking at the EWO-indicator we have a massive divergence telling us that momentum for this decline is weakening almost by the minute and still this decline continues. By breaking below the ideal target at 1.6119 we now have a window open for a continuation even lower towards 1.5873. That said, we find it most unlikely that we will see a decline that low and regard this as a short term spike below the ideal 1.6119 target. However, to confirm that wave C is over a break above 1.6263 and more importantly a break above 1.6348 is needed. A break above 1.6348 would call for a new rally higher towards 1.7274 and even higher longer term.

Trading recommendation:

The aggresive long at 1.6225 was stopped out with a small loss at 1.6095. As we now have an opening for a deeper decline towards 1.5873. Long EUR positions should only be taken when if the market commits to us by breaking above 1.6348. Therefore, we recommend placing an order to buy EUR at 1.6350.