Technical summary:
A back-test of the broken support-line has been seen and we are looking for a decline to the bottom of wave (iv) at 1.6035, which also marks the 23.6% corrective target of a rally in wave 1. This correction is wave 2 could be deep, but we have seen the cross producing only very small corrections in the second wave and therefore do not want to overstate the downside potential.
Trading recommendation:
We sold EUR at 1.6565 with stop placed at 1.6640 and take profit placed at 1.6125. Do not be too aggressive towards the downside thus.