A break below support at 1.6349 indicates that wave 1 has found a top at 1.6812 and correction in wave 2 is unfolding now. We will be looking for an opportunity to test the level of 1.6115, which acts as both the bottom of wave (iv) and the 23.6% corrective target.
In the short term, we will look for resistance to be found at 1.6568, to break below minor support at 1.6400 confirming that the next part of a decline towards 1.6115 is taking place.
Our stop at 1.6425 was hit with a loss and we sell EUR at 1.6565 our stop placed at 1.6640. Take profit will be placed at 1.6125.
The material has been provided by InstaForex Company – www.instaforex.com