As long as resistance at 1.6764 is able to cap the upside, as long will the downtrend from 1.7294 stay alive. That said, we see a very limited potential towards the downside and think the possibilities now is towards the upside and no longer towards the downside. The loss of downside momentum, is a warning that a low could be found anytime now.
A break above resistance at 1.6764 is needed to confirm that a low has been seen in wave ii and that wave iii to above 1.7300 is developing.
R.:1.6827
R2: 1.6764
R1: 1.6708
Pivot: 1.6636
S1: 1.6605
S2: 1.6584
S3: 1.6544
Trading recommendation:
We will buy EUR at 1.6600 or upon a break above resistance at 1.6764. We will place our stop at 1.6510.
