The decline from 1.6728 failed to break below short-term important support at 1.6532 and the following rally above the prior peak at 1.6728 confirmed a more complex correction developing in wave iv and a move closer to the 38.2% corrective target at 1.6921. This corrective target is now being tested and wave iv could complete anytime now for renewed downside pressure. To confirm wave iv has completed a break below minor support at 1.6777 is needed and more importantly a break below support at 1.6532 that confirm wave iv has completed and wave v lower is developing.
R3: 1.7066
R2: 1.6975
R1: 1.6921
Pivot: 1.6878
S1: 1.6818
S2: 1.6777
S3: 1.6725
Trading recommendation:
Our stop at 1.6705 was hit for a minor loss. We will sell a break below 1.6777.
