Today's support and resistance levels:
R3: 1.6243
R2: 1.6216
R1: 1.6168
Current spot: 1.6163
S1: 1.6118
S2: 1.6092
S3: 1.6057
Technical summary:
We have seen a nice impulsive rally to 1.6216, but we still have not seen the break above important resistance at 1.6243, which keeps the expanding diagonal alive. That said, we do favor the scenario, where red wave (ii) ended at 1.5903 and red wave (iii) higher to 1.6800 is developing. Short term, we will be looking for a minor correction towards 1.6057 before the next impulsive rally higher to 1.6446 on the way towards 1.6800. Only a break below 1.5903 will shift the preferred count to the expanding diagonal.
Trading recommendation:
Our profit target at 1.6160 was hit for a nice profit. We will re-buy EUR at 1.6065 or upon a break above 1.6169 with stop place at 1.6000 is both cases.
The material has been provided by InstaForex Company - www.instaforex.com
