We continue to view the decline from 1.3838 as wave C in a larger A-B-C correction from 1.3852. Price is likely to continue lower towards the 100% of 1.3852-1.3608/1.3838 at 1.3595. The next bearish target is the 161.8% extension at 1.3445.
We mentioned Friday that a bounce towards 1.3714 would complete a smaller correction and give way to the downside. The EURUSD rallied to 1.3708 last night before declining to current levels. The fact that the decline from 1.3825 to 1.3641 is in 5 waves bolsters the bearish outlook.
Strategy: Remain Bearish against 1.3824, targets 1.3600 and 1.3450