Euro Breaks Below 1.3700

[B]Commentary[/B]: We wrote yesterday that “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.”

This is exactly what happened as the EURUSD dropped below 1.3696 to hit 1.3693. The rebound from there was a correction to 1.3770 and the bigger decline is underway now. This decline should extend to at least the 100% extension of 1.3852-1.3693 to 1.3611, but bearish potential is much larger.

[B]Strategy[/B]: Bearish now, against 1.3770, target TBD