Euro Correcting Losses

We are still looking for price to come under last week’s low at 1.3541 to more strongly signal that a top is in place. This level is reinforced by 2 month trendline that is just above 1.3550 (20 day SMA is also at 1.3553). Oscillators on the daily are bearish as RSI has rolled over from above 70 and a bearish MACD crossover occurred Tuesday.

Near term, it is possible to count a 5 wave decline from 1.3677 and the rally from 1.3559 looks corrective and may be playing out as a double zigzag. In this case, we would see one more small down-up scenario before a bigger decline takes place. The next level of short term resistance is the 61.8% at 1.3632.