Once again this pair has failed miserably and broken well below important short-term support at 1.6424 invalidating the short-term bullish count. However, the larger bullish count has not been invalidated yet and it will only be so if support at 1.6104 is broken too.
As we look for the low of red wave ii, we have to remember that it is allowed to correct 100% of red wave i, but it can never ever break below the starting point at 1.6104; otherwise our count will be invalidated.
In the short term, we expect minor support at 1.6196 to be able to protect the downside for a new rally; and the price, to test important resistance at 1.6654 and confirm above it that red wave ii is in place for more upside pressure towards 1.6931 and 1.7220.
Our stop at 1.6423 was hit for a loss. We will re-buy EUR at 1.6210 with a stop at 1.6185