Technical summary:

Support at 1.5000 was pierced shortly on Friday, but the quick return higher and the bullish engulfing candle does indicate that wave (ii) ended at 1.4945 and wave (iii) higher towards at least 1.6455 should now be expected. We will of certainly like to see a break above resistance at 1.5209 too, as confirmation that a bottom indeed is in place for a rally towards 1.5480 as the next resistance on the way higher. Only a break below 1.4945 will invalidate the bullish count and call for a decline towards 1.4700 before moving higher.

Trading recommendation:

We bought EUR at 1.5025 and have placed our stop at 1.4940.