The situation in the analyzed trading pair continues to develop according to the previously outlined plan. The euro has sharply declined, leaving behind a clearly identifiable downward impulse.

This impulse may be part of a correction taking the form of a zigzag. In this case, the downward movement can be considered complete and labeled as wave 2. The next logical step would be an upward price movement. However, it is too early to rush into buying.

A confirmation is needed in the form of consolidation above the 1.0420 level.

Recommendation: BUY 1.0420, SL 1.0400, TP 1.0530.