Euro 5 Waves Down Indicates Near Term Trend Change

[B]Commentary:[/B] Looking at the hourly, a drop under 1.3696 would complete a 5 wave decline from 1.3852. A retrace in larger wave 2 or b would follow and that would offer an opportunity to get short for a much bigger decline.

Sometimes, a 5 down can signal the end of a correction (c wave), but in this case we believe that the 5 down signals the beginning of a larger decline because an ending diagonal ended at 1.3852, which means that the decline is from the top and most likely the beginning of the decline - not the end.

[B]Strategy:[/B] Flat