Technical summary:

After a minor consolidation is red wave ii, we will be looking for acceleration higher through 1.6310 for a continuation higher of 1.6446 as the next major upside target. In the short term, we expect support at 1.5942 to protect the downside for a break above minor resistance at 1.6096 confirming acceleration higher to 1.6310 and even higher to 1.6446 as the next major target.

Looking at the longer-term picture, a break above 1.6446 will be very bullish and call for a return to the August 2013 higher at 1.7274.

Trading recommendation:

We are long EUR from 1.5810 and will keep our stop at break-even. If you are not long EUR yet, then buy a break above 1.6096 and place you stop at 1.5935.