Today's Support and Resistance levels:

R3: 1.6498

R2: 1.6457

R3: 1.6412

Current Spot: 1.6382

S1: 1.6341

S2: 1.6298

S1: 1.6259

Technical summary:

The correction from 1.6636 has become deeper than we expected and that opens up the case of our alternative count (see the chart below). We still prefer the bullish count we presented yesterday, but the break below support at 1.6458 has opened up for a deeper correction towards 1.6341, which will ideally protect the downside for a break above 1.6457 confirming a new rally towards 1.6636 and beyond. Under our preferred count, we can under no circumstances allow a break below support at 1.6259. A break below 1.6259 will cause an overlap between wave i and wave iv, which is not allowed under the Elliott Wave Principle and that will cause us to shift towards our alternative count below.

If the alternative count becomes our preferred count this count will call for a continuation lower towards 1.5831 in wave c of Y.

Trading recommendation:

The stop at 1.6445 was hit for a loss. We are looking for a new buying opportunity at 1.6350 with a stop at 1.6255.