Today's Support and Resistance levels:

R3: 1.5795

R2: 1.5726

R1: 1.5661

Current spot: 1.5635

S1: 1.5584

S2: 1.5550

S3: 1.5500

Technical summary:

The break below 1.5744 has triggered a medium-term recount. The rally from the early August 2012 low at 1.4966 to 1.7274 has clearly been in three waves, but the continued downside pressure from the 1.7274 high indicates that a flat correction should be expected. This would call for a continuation lower close to the 1.4966 low. We do not have to test the low to call it a flat correction, but we should at least see a decline to 1.5229 and perhaps even lower to 1.4966 before this decline is over.

In the short term, we should expect a minor low near 1.5550 for a correction towards 1.5765 and then lower again towards 1.5229 and maybe even 1.4966.

Trading recommendation:

Our stop at 1.5740 was hit for a loss. We will stay neutral for now awaiting better opportunities.