Euro 1.3410 is Key

Commentary: The drop below 1.3420 destroys the short term impulse pattern that we thought was unfolding. This leaves 3 waves up from 1.3410, which is corrective. One of two scenarios is likely to play out from here.

1.) A drop below 1.3410 leads to a test of trendline support near 1.3360. A drop under there indicates additional bearish potential.
2.) The EURUSD rallies without first dropping under 1.3410 and traces out either a flat (in which case resistance is at 1.3526) or a triangle (in which case resistance is at 1.3480). The flat scenario is more bearish.
The scenarios proposed above are all bearish and we are looking lower as long as price remains below the potential resistance line drawn off of the 4/30 and 5/16 highs. Price remains trapped below the 55 day SMA as well (on a daily closing basis).

Strategy: Until the pattern clears up, we are looking for opportunities elsewhere