Euro Breaking 20 Day SMA

The subdivisions of the decline from 1.3627 exhibit impulsive characteristics and could be the beginning of a 3rd wave down (or C wave). The bearish structure is intact with price below 1.3619 and potential short term support is at the 100% extension of 1.3680-1.3533/1.3627 at 1.3480 and the 161.8% extension at 1.3389.

A turn higher from 1.3480 would leave to equal legs from 1.3680, which would possible lead to a new high. If the decline stretches to 1.3389, then probability is high that a multi-week (maybe multi-month) top is in place at 1.3680. Trendline support drawn off of the 3/9 and 4/9 lows is giving way and price is now below the 20 day SMA (1.3580). The short term pattern is also a head and shoulders reversal and would be completed on a break below 1.3533.