With the break above 1.6706 it was confirmed that wave iii/ had completed and wave iv/ towards at least 1.6914 is developing. The former resistance at 1.6706 now acts as support and will ideally protect the downside for the expected continuation higher to 1.6914.

Only an unexpected break below support at 1.6561 will invalidate the expected rally towards at least 1.6914.

R3: 1.6836

R2: 1.6793

R1: 1.6731

Pivot: 1.6706

S1: 1.6660

S2: 1.6570

S2: 1.6561

Trading recommendation:

We are long EUR from 1.6706 and we have placed our stop at 1.6555. Upon a break above 1.6768 we will move our stop higher to break-even.