The EURUSD is sitting just above the level that we cited yesterday as potential resistance. We wrote that “1.5700/40 likely provides some resistance, which is a good area to lighten up on longs. Remember, there is the possibility that this rally will reach a new high within the next 3 to 4 weeks so longer term bulls should be patient.”
There is no change to strategy here. Even if a larger correction is underway from 1.6018, then a test of 1.60 is possible, if not probable, because the drop from 1.6018 is in 3 waves. This would be wave A of a large flat and B waves of flats often retrace 100% of wave A. In summary, stay bullish (move risk to 1.5630) until further notice.
