The corrective decline in wave iv continued lower to the 61.8% corrective target at 0.8747 as expected. This likely marks the completion of wave iv, but we need a break above minor resistance at 0.8818 and more importantly a break above resistance at 0.8867 to confirm that wave iv has completed and wave v towards our ideal target at 0.9742 is developing.

As long as minor resistance at 0.8818 is able to cap the upside, we still could see a final spike to just below 0.8747, but the downside should be very limited from here.

R3: 0.8867

R2: 0.8818

R1: 0.8784

Pivot: 0.8773

S1: 0.8747

S2: 0.8715

S3: 0.8682

Trading recommendation:

We bought EUR at 0.8760 and we have placed our stop at 0.8700.