The corrective decline in wave iv is more persistent, that we expected and is headed for the 61.8% corrective target of wave iii at 0.8747. This wave iv correction is allowed to move to just above 0.8592 but it can't break below here or else we have an overlap between wave i and iv, which isn't allowed under the Elliott Wave Principle. So the corrective decline, as we continue to favor this decline being, still has room to the downside, but for every step lower it becomes more and more limited.

Only a break above minor resistance at 0.8867 will indicate a possible completion of wave iv, while a break above resistance at 0.8911 confirms its completion and the onset of wave v towards 0.9742.

R3: 0.8953

R2: 0.8910

R1: 0.8867

Pivot: 0.8851

S1: 0.8806

S2: 0.8747

S3: 0.8682

Trading recommendation:

Our stop at 0.8800 was hit for a 100 pip loss. We will re-buy EUR at 0.8760 or upon a break above 0.8867