Wave summary:
What a scary decline from yesterdays high at 1.6715. This is a classic deep wave two correction, which are allowed to correct 100% of the first impulsive move, but it can never ever break below the starting point at 1.6434.
In the short term, we are looking for a break above minor resistance at 1.6541 as the first good indication that blue wave ii is complete and blue wave iii higher to at least 1.6907 and likely even higher towards 1.7185 is developing.
A break below important support at 1.6434 will invalidate the bullish count and call for a decline to 1.6250 before the next rally higher should be expected.
Trading recommendation:
We are long EUR from 1.6680 with stop placed at 1.6430. If you are not long EUR yet, then buy upon a break above 1.6541 and use the same stop at 1.6430.
The material has been provided by InstaForex Company - www.instaforex.com