Euro 5th Wave Extending

Commentary: Wave 5 within the 5 wave bull cycle from 1.3360 is underway. Wave 5 may have started at 1.4125 and here is why. An extremely rare pattern called a running flat may be wave 4. In a running flat, wave b exceeds the origin of wave a, but wave c does not even reach the terminus of wave a.

This pattern occurs in markets that are so bullish that the correction does not even complete. This information, combined with the facts that 5th waves in currency markets tend to extend and that the sentiment indicators we follow are not extreme, favors continued gains in the EURUSD. Short term support is at 1.4374.

Strategy: Remain bullish, move risk to 1.4279 (from 1.4188), Target TBD.