Today's support and resistance levels:
R3: 1.6035
R2: 1.6015
R1: 1.5978
Current spot: 1.5954
S1: 1.5931
S2: 1.5906
S3: 1.5860
Technical summary:
The break below support at 1.5949 has invalidated the immediate bullish count. The question now is whether a series of wave one's and two's is developing or we are looking at an expanded diagonal. If we are looking at a series of waves one's and two's the decline from 1.6445 must stay above 1.5717 for a break above 1.6082, which calls for a new impulsive rally to 1.6446 and higher to 1.6800. If however support at 1.5717 is broken, the count switches to the expanding diagonal count and call for a continuation lower to 1.5660 before the final rally higher to 1.6800.
Trading recommendation:
We will buy EUR at 1.5725 with stop at 1.5710 or upon a break above 1.6082.
The material has been provided by InstaForex Company - www.instaforex.com
