Recent dip towards 1.6650 opens up a quick long here at 1.6665 for a retest of 1.68.
Previous range extension following upward break of wedge in November (A.) led to the measured move target of 1.665 to be reached in late January (B.). Then a retest of previous resistance at 1.6250 in early February (C.) initiated another leg higher to current yearly high above 1.6800.
Previous 1.6650 resistance may now provide necessary support and attempted but failed dark cloud cover on February 17th shows bearish pressure to be limited still.
Stop-loss order could be placed just below 1.6650 to considerably improve R:R profile but we prefer a more conservative approach. The 38.2% retracement of the most recent uptrend at 1.66 (also January 2nd high) should thus provide adequate downside protection against any stop runs below 1.665 and adverse reactions to tonight's FOMC minutes and tomorrow's UK Retail Sales numbers.
Previous range extension following upward break of wedge in November (A.) led to the measured move target of 1.665 to be reached in late January (B.). Then a retest of previous resistance at 1.6250 in early February (C.) initiated another leg higher to current yearly high above 1.6800.
Previous 1.6650 resistance may now provide necessary support and attempted but failed dark cloud cover on February 17th shows bearish pressure to be limited still.
Stop-loss order could be placed just below 1.6650 to considerably improve R:R profile but we prefer a more conservative approach. The 38.2% retracement of the most recent uptrend at 1.66 (also January 2nd high) should thus provide adequate downside protection against any stop runs below 1.665 and adverse reactions to tonight's FOMC minutes and tomorrow's UK Retail Sales numbers.