Euro Decline 5 Waves Up Warrants Bullish Bias

Commentary: We have favored the downside because we were looking for a deeper decline to more fully correct the 5 wave advance from 1.3360-1.3718. This is still possible but the rally from 1.3551 is in 5 waves itself and suggests additional gains as long as price is above1.3551.

Allow for some weakness to be followed by a strong rally in wave iii of 3. This short term outlook is negated on a drop under 1.3551.

Strategy: Flip to bullish, risk is at 1.3551, target above 1.3852