We did not expect a break below 1.6486, but it told us that a decline from 1.8019 was not over yet and more downside was needed. We have adjusted our wave count accordingly and the next downside target is found at 1.6075, which is just above the 61.8% corrective target of a rally from 1.3884 to 1.9114 that is seen at 1.5882. Therefore, we will be looking for signs of a bottom in the area.
At this point it will take a break above 1.6499 to indicate a bottoming being in place.
Our stop at 1.6540 was hit for a very small loss. We will be looking for new EUR-buying opportunities in the area of 1.5882 – 1.6075.
The material has been provided by InstaForex Company – www.instaforex.com