Wave summary:

Yesterday, we saw a rally to 1.7273 before this impulsive wave (blue wave i) ran out of steam and what have turned out to be a rather deep blue wave ii have since been unfolding. We do think that the correction in blue wave ii has terminated and blue wave iii higher has taken over. This blue wave iii is expected to be very violent and will likely move almost vertical higher towards 1.7641 and 1.8020.

We had not expected that the fight between the bulls and the bears would continue to be as tough as it has turned out to be, but then second waves is always a difficult to handle as they are allowed to correct 100% of the first wave, but never ever can break below the starting point of the first wave, which in this case was at 1.6637.

Trading recommendation:

We where locked into a EUR-long position at 1.7210 with our stop placed at 1.6635. If you are not long EUR yet, buy near 1.6855 or upon a break above 1.7000 and use the same stop at 1.6635