Technical summary:
The long-term resistance line at 1.7274 was tested and rejected the first test. Ideally, it will produce a correction towards 1.5500 and maybe even lower to 1.5290, before the next impulsive rally through the resistance line higher to 1.6456 as the next major upside target.
However, we know that corrections in the third wave tends to be small or even sub-normal. So, the risk of a breakout above the long-term resistance line will open up the upside for a direct rally towards 1.6456.
Trading recommendation:
We will buy EUR at 1.5525 or upon a breakout above resistance at 1.5872 with a stop placed at 1.5200
