Technical summary:
Red wave iv is likely to be terminated at 1.4237 as we pointed out yesterday. However, the following minor correction was a bit more complex than we had expected. No matter what, we are currently looking for red wave v lower towards at least 1.3905 and even lower to 1.3700, if red wave v extends too. In the short term, we will ideally see resistance at 1.4154 protecting the upside for the next strong decline towards 1.4009 and even lower to 1.3967 before the next possible consolidation.
Trading recommendation:
Our stop at 142.00 was hit, but we will re-sell EUR at 1.4145 with a stop at 1.4210 and take profit at 1.3920
