Euro Decline May Prove Impulsive

Commentary: A top is in at 1.4281, but the question is what degree top is in place. So far, there is just 3 waves down from the top but if the decline extends to 5 waves lower, then we?ll have an opportunity to get bearish against the high (1.4281). There are a few possibilities from a wave count perspective.

A 5 wave rally from 1.3360 may be complete from 1.3360 with an extended 5th wave. Therefore, we are looking for at least a return to 1.3828 (former 4th wave) and possibly 1.3712 (61.8% of 1.3360-1.4281). As the decline unfolds, we will be able to better ascertain bearish targets.

Strategy: Flat (waiting for clarity)