We have been locked in a range between support at 1.6186 and resistance at 1.6515. As long as support at 1.6186 protects the downside, we do expect that resistance at 1.6515 sooner or later will be broken for a rally towards 1.6950 and above will confirm the bottom for wave 2 is in place at 1.6124 and a new strong rally higher to at least 1.8019 should be expected.
If however, support at 1.6186 gives away, the bottom is not yet set in place and a new low slightly below 1.6124 should be expected, but the downside potential seems to be limited from here.
We are long EUR from 1.6390 with stop placed at 1.6180. If you are not long EUR yet, the buy near 1.6186 and use a close stop at 1.6180.
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