Technical summary:
We saw a small break above resistance at 1.5920 indicating that the correction in wave ii is over. In the short term it's important support at 1.5699 is able to protect the downside for a new impulsive rally above minor resistance at 1.5807 and more importantly a break above resistance at 1.5867 as that would call for the next rally higher to 144.03 and beyond.
The risk is a break below support at 1.5699 that will call for a prolonged consolidation in wave ii and likely a move closer to 1.5529 and maybe even slightly lower to 1.5407 before wave ii is over.
Trading recommendation:
Our stop at 1.5700 was hit and we will stay neutral for now. We will only buy EUR upon a break above 1.5807
The material has been provided by InstaForex Company - www.instaforex.com