Technical summary:

Our call for a correction in wave (ii) towards 1.5354 has been right in the "bulls eye". With a low at 1.5341 it doesn't get much better than that. We are now looking for a break above minor resistance at 1.5538 as the first indication that wave (ii) is over and wave (iii) is developing. To confirm that wave (iii) indeed is in motion, a break above resistance at 1.5712 is needed and would call for an acceleration towards at least 1.6853. In the short term, we will be looking for minor support at 1.5407 to protect the downside for the break above 1.5538. Only a break below the 1.5354 low, would delay the expected rally higher towards 1.6853.

Trading recommendations: