Euro Ending Diagonal on Daily Chart?

Commentary: We wrote yesterday that “the EURUSD decline looks like a clear 5 wave affair, therefore we are treating 1.4349 as a significant top. The advance has unfolded in a corrective manner as well, probably a double zigzag.”

However, the decline from 1.4279 has unfolded as a correction (zigzag). With the larger trend remaining up (as it has for some time), be sure to keep risk tight if dedicated to the bear side. On the other hand, a cautious bullish bias is warranted against 1.4188 for a break of 1.4349. A large ending diagonal might be unfolding in the 5th wave position within the 5 wave bull cycle from 1.3360.

Strategy: Flip to bullish, against 1.4188, for a break above 1.4349.