There was only time for a 38.2% correction in wave ii/ (not the most common for second wave retracements). The break back above 1.6812 was the tell, that wave ii/ completed early and wave iii/ higher towards the 161.8% extension target at 1.7133 is developing.
Support is now seen at 1.6885 and strong support at 1.6850, which ideally will be able to protect the downside for the next push higher. However, it will take a break below support at 1.6737 to question the bullish outlook.
Our stop+revers was hit at 1.6815 and we are now long EUR and we will place our stop at 1.6730. If you are not long EUR yet, then buy near 1.6837 and use the same stop at 1.6730.
The material has been provided by InstaForex Company – www.instaforex.com