Wave summary:
Our fear of a decline to strong support at 1.6473 came true. With a low at 1.6338, all requirements to the correction in wave [ii] has been fulfilled and now we will be looking for signs that wave [iii] higher towards at least 1.7817 and more likely even higher towards 1.8731 is ready to take over.
The first indication that wave [iii] is developing is a breakout above resistance at 1.6662 and confirmation that wave [ii] is indeed over and wave [iii] developing will be seen upon a breakout above 1.6893. Until the breakout above 1.6662 is seen, the risk of move to just below 1.6338 can not be ruled out.
Trading recommendation:
We bought EUR at 1.6475. We will place our stop at 1.6375 as a breakout below 1.6375 will call for a move below 1.6338.
