Technical summary:

We have seen a test of minor support at 1.6313 (the low has been 1.6316) and that should be enough for the next part of the rally higher to 1.6787 and even higher to 1.7154. That said we have entered an area of price-resistance, which can support further progress.

Ideally, the short-term support near 1.6313 will keep protecting the downside for a break above the channel resistance line near 1.6544 confirming the rally to 1.6787 and 1.7154. An unexpected break below 1.6313 will delay the expected upside, but only a break below 1.6194 will call for a more prolonged corrective consolidation before the next impulsive rally higher.

Trading recommendation:

We are long EUR from 1.5810 and will move our stop slightly higher to 1.6185. If you are not long EUR yet, buy near 1.6313 or upon a break above 1.6476 and use the same stop at 1.6185.