Euro 5 Waves ...Again

The rally that has unfolded from 1.3541 is in 5 waves. The question is whether or not this 5 wave rally is the end or beginning of a bull trend. Big picture, we still think that the EURUSD is much closer to a top than bottom given overbought RSI on the daily and the 7 wave structure of the rally from 1.1638 (which is corrective).

If 1.3666 gives way, which seems likely since the EURUSD is but a few pips from there, then Fibonacci extensions are at 1.3745 and 1.3823. Initial support is at 1.3621. There is no sign of a reversal until we see impulsive downside action.