Today's Support and Resistance levels:

R3: 1.6464

R2: 164.05 - Important resistance - Break above here should accelerate the rally.

R1: 1.6368

Current Spot: 1.6362

S1: 1.6326

S2: 1.6267 - Important support - Break below here will question any further upside progress.

S3: 1.6239

Technical summary:

We are closing in on point zero. Will we see a break above resistance at 1.6405 (our preferred scenario) for a continuation higher towards 1.6515 and 1.6987 or do we see a break below 1.6267 (alternate scenario) telling us that the rally from 1.6071 only was a correction and that more downside is needed, for a break below 1.6071 and continuation down to 1.5872.

As said, we still prefer the scenario calling for a break above 1.6405, which would call for a new test of resistance at 1.6515 and higher towards the inverted S/H/S target at 1.6987, but we need to see a proof. Until we see the final proof, we need to stay flexible.

Trading recommendation:

Buy after a break above 1.6405 (buy at 1.6410) and place stop at 1.6280 or sell upon a break below 1.6267 (sell at 1.6255) and place stop at 1.6410.