EUR/USD Higher Prices Likely

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.” The retrace scenario is taking hold as we expected with test of 1.5860 likely

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

Written by Boris Schlossberg, Senior Currency Strategist
DailyFX