Technical summary:
We have seen a downward decline in wave v continue towards the 38.2% target at 1.4048, which calls for an extended wave v lower to 1.3867 and even lower to 1.3687 before a firm bottom is in place. In the short term, we are likely to see minor resistance at 1.4045 protecting the upside for a move closer to 1.3956 as the next downside target and a possible end of red wave iii. Once red wave iii is in place, it will be time for a correction back towards 1.4081 before renewed downside pressure should be expected towards 1.3867 and even lower.
Trading recommendation:
Here, we missed our EUR-selling order by a small margin and here we should not play catch with already well advanced market.
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