Following the defense of key-support at 1.3477 (2014 low) the market finally managed to clear key-resistance at 1.3673/76 (200 DMA/pivot) yesterday which cleared the way for a stronger wave 2 or wave B countertrend rally.
The latter is normally retracing 76.4 % (1.3877) of the preceding decline (wave A or wave 1) where a perfect risk reward would be given to re-enter a strategic short position in anticipation of a C.-or 3rd wave decline. Only a decisive break above 1.3877 would re-open the upside towards 1.4240/59/83 (m. Ich.-lagging/76.4 %/pivot).
JPM