The rally from 1.6671 has been much stronger than expected. The break above short-term important resistance at 1.6981 has invalidated the possibility for another stab to the downside to a new low below the 1.6671 low. This means wave C of ii now is complete and wave iii higher is developing.
Short-term, we should see resistance near 1.7145 for a correction closer to 1.6910 before the next rally higher should be expected to above 1.7145 for a continuation higher to 1.7479.
R3: 1.7162
R2: 1.7145
R1: 1.7050
Pivot: 1.6990
S1: 1.6958
S2: 1.6900
S3: 1.6852
Trading recommendation:
Our stop at 1.6985 was hit for a 65 pips loss. We will sell EUR at 1.7140 with stop placed at 1.7200.
