A back-test of the broken support-line has been seen and we are looking for a decline to the bottom of wave (iv) at 1.6035, which also marks the 23.6% corrective target of a rally in wave 1. This correction is wave 2 could be deep, but we have seen the cross producing only very small corrections in the second wave and therefore do not want to overstate the downside potential.
We sold EUR at 1.6565 with stop placed at 1.6640 and take profit placed at 1.6125. Do not be too aggressive towards the downside thus.
The material has been provided by InstaForex Company – www.instaforex.com