We wrote yesterday that “the wave 2 of V low is at 1.5611 and price shouldn’t even come close to there.
Expect the rally to accelerate and ‘go parabolic’ soon.” The EURUSD rally has accelerated as expected in wave 3 of V. There is a chance that wave i of 3 is near complete and that a setback, ending near 1.5840, will begin soon. However, this is a major breakout and the potential for extension does exist. Short term traders would be served well be lightening up on longs since this is just the second test of 1.60. However, keep the bigger picture in mind. The initial objective is not until 1.6325.
STRATEGY: Bullish, against 1.5611 (lighten up now and we’ll look to re-enter soon…probably near 1.5840), targets 1.6325 and above