Today's support and resistance levels:

R3: 1.7109

R2: 1.6980

R1: 169.34

Current Spot: 1.6888

S1: 1.6798

S2: 1.6739

S3: 1.6662

Technical overview:

Our expectation of a top at 171.09 was clearly confirmed yesterday, as we broke below support at 1.6692 without any problems. We are looking for black wave iv declining to 1.6399 before the final black wave v can take over. In the short term, we are looking for resistance at 1.6934 to protect the upside for a break below 1.6798, which will confirm that the next decline lower is unfolding. However, if we break above 169.34 we might already have seen the bottom of black wave iv at 1.6537 and should expect a new rally towards 171.09.

Trading recommendation:

We short EUR from 1.6797 and will move our stop lower to 1.6950. We will place our take profit + reverse our short EUR position to a long EUR position at 1.6450. If you do not have short positions on EUR already, then sell EUR here or upon a break below 1.6798 with the same low risk stop.