Wave summary:
We have not yet seen a breakout above resistance at 1.6680 which is needed to confirm that a bottom is in place for wave [ii] and the extended rally higher to 1.8731 is unfolding. However, yesterdays correction completed at 1.6456 and a new run is expected together with a firm breakout above the resistance of 1.6680. This will be the first strong indication that wave [iii] higher is developing. To confirm that wave [iii] is unfolding, a breakout above 1.6893 is needed.
As long as resistance at 1.6680 is able to protect the upside, the risk of an even more complex wave [ii] presents, but this view is not our preferred one.
Trading recommendation:
We bought EUR at 1.6550. We will place our stop at 1.6335. We will move our stop higher soon.
The material has been provided by InstaForex Company - www.instaforex.com