Technical summary:

A correction from 1.6586 became deeper than expected, but only an unexpected break below 1.6143 will indicate that more substantial correction is needed, before the next impulsive rally higher. In the short term, we expect support near 1.6257 to be able to protect the downside for a break above 1.6300 and more importantly a break above minor resistance at 1.6342 strongly indicating a bottom in place for the next rally higher to 1.6586 and beyond to 1.6787.

Trading recommendation:

Our stop at 1.6300 was hit for a big profit. We will buy EUR upon a break above 1.6300 with stop placed at 1.6140.