Technical summary:
We have seen a low of 165.84 (just below our support at 1.6590) and we think it's just a matter of time before blue wave iii moves higher towards 1.6915 and 1.7050 on its way to 1.7245. In the short term, a breakout above minor resistance at 1.6714 will confirm that the correction from 1.6812 is over and renewed strength towards 1.6915 and even 1.7050 should be expected.
Only a breakout below 1.6607 will delay the expected upside pressure for a move closer to 1.6560 before making the next attempt to push the price higher again.
Trading recommendation:
We are long EUR from 1.6588 with our stop placed at 1.6490. Upon a break above 1.6714, we will move our stop higher to break-even.
