Technical summary:
The flat correction in wave 2 continues to unfold just as expected. We are currently looking for one final decline to just below 1.6325 to terminate wave 2 and set the stage for wave 3 higher. A break above minor resistance at 1.6602 will be the first indication that wave 2 is over and wave higher is developing.
Even if support at 1.6325 gets substantially broken, the downside potential should be limited to 1.6115.
Trading recommendation:
We will buy EUR at 1.6335 or upon a break above 1.6602 with our stop placed at 1.6300.
