Today's Support and Resistance levels:

R3: 1.6326

R2: 1.6275

R1: 1.6219

Current spot: 1.6137

S1: 1.6102

S2: 1.6063

S3: 1.6030

Technical summary:

The break above resistance at 1.6086 yesterday was very frustrating and forced a change of the large count. The new count shows that we are looking at a combination of corrections. The first correction was an expanded flat that ended 1.6073 in mid-September 2013. This first three wave correction was followed by an equal complex X-wave and we are currently in the later part of a zig-zag decline. This zig-zag has unfolded in wave A from 1.6996 to 1.6214 and was followed by yet another complex wave B to 1.6787, and we are currently in wave iv of the final C wave lower. This wave iv is expected to end close to resistance at 1.6219 the 50% corrective target of wave iii and should be followed by the final decline towards 1.5530.

Trading recommendation:

Sell EUR at 1.6175 with a stop at 1.6275 or sell upon a break below support at 1.6102 with a stop at 1.6170.