Euro Bullish Above 1.3400

Commentary: The EURUSD has gone nowhere since 5 pm (NY) yesterday, trading between 1.3423 and 1.3446. This is usually the type of price action we see prior to the release of the employmwent situation. Where do we go from here? The decline from 1.3680 has been choppy and certainly appears corrective.

However, the series of lower highs and lower lows is, by definition, a downtrend and could be either a series of 1st and 2nd waves lower or a diagonal (labels not shown) in the 1st wave position. Short term, reward/risk favors longs since it remains possible that an A-B-C correction (shown on chart) ended at 1.3403, but watch potential resistance in the 1.3509/74 zone (38.2% - 61.8% of 1.3680-1.3403) for a reversal.

Strategy: Until the pattern clears up, we are looking for opportunities elsewhere