Today's Support and Resistance levels:
R3: 1.6469
R2: 1.6406
R1: 1.6356
Current Spot: 1.6298
S1: 1.6258
S2: 1.6219
S3: 1.6173
Technical summary:
We saw a test of strong short-term resistance at 1.6405 (the high was at 1.6406) yesterday, and it is currently heading to the important neckline support near 1.6233. A break below the neckline support at 1.6233 and confirmed by a break below 1.6219 will accelerate the downside pressure for a decline towards 1.6071 and 1.5872 (the 61.8% retracement of wave 1 or A). However, until we have a clear break below 1.6233, we are locked in this messy and hard-to-read consolidation, which has become the area of the tuck of war between the bulls and the bears. Only a break above the resistance at 1.6406 will ease the downside pressure for a rally towards the opposite neckline resistance near 1.6500, and if broken, it will call for a important bottom being in place and a new major rally back towards 1.7274 and higher.
Trading recommendation:
Stay short from 1.6255 and move your stop lower to 1.6360.
