Today's Support and Resistance levels:

R3: 1.6789

R2: 1.6746

R1: 1.6700

Current Spot: 1.6661

S1: 1.6625

S2: 1.6578

S3: 1.6519

Technical overview:

With the break below important support at 1.6825 (top of red wave i) we knew that we had seen the top of black wave v and wave C at 1.7111. Even though we believed that we had more more room towards the upside. We warned that a top could be in place any time, as we had a complete five wave rally from the 1.5080 low. So what can we expect from here? First of all we are likely looking for a corrective X-wave building. The ideal target would be just below 1.6388. Therefore, we will have to switch our mind-set towards a corrective decline rather than an impulsive rally higher. In the short term we expect a minor corrective rally towards 1.6789, from where the next part of the X-wave decline is taking place towards 1.6529.

Trading recommendation:

We are looking for a possibility to sell EUR and will sell at 1.6780 with a stop at 1.6855. We will place our take profit at 1.6550.