We have seen another dip to just below 1.6606 (the low has been seen at 1.6598) and we think it's a matter of time before a bottom is in place for wave ii and a strong rally higher is seen, through resistance at 1.6707 and more importantly above resistance at 1.6764 to confirm the low is in place. That said, we have to accept the possibility of yet another new low as long as minor resistance at 1.6707 is able to cap the upside.
Once the low of wave ii is confirmed, we should be looking for wave iii to take us a lot higher through the peak at 1.7294.
R3: 1.6827
R2: 1.6764
R1: 1.6707
Pivot: 1.6676
S1: 1.6636
S2: 1.6598
S3: 1.6531
Trading recommendation:
We bought EUR at 1.6600 and has placed our stop at 1.6510.
