The break below support at 1.6958 told us that the top of red wave i was seen with the test of 1.7216 and red wave ii now is developing close to 1.6784. The correction in red wave ii has declined to a low of 1.6822, which could be correction enough for red wave iii to take over for the next impulsive rally towards 1.7772.
Short-term a break above minor resistance at 1.7054 will confirm that red wave ii has completed and red wave iii higher is developing.
Trading recommendation: Our stop at 1.6950 was hit for a nice profit of 110 pips. We will be looking for a new buying opportunity 1.6890 with a stop placed at 1.6815 or upon a break above 1.7054.