[B]Commentary[/B]: 1.3800 held yesterday but the EURUSD could test that level again today before bearish potential comes to the forefront. We say this because the rally from 1.3731 may be tracing out an ending diagonal. If this is the pattern playing out, then we should see a spike through 1.3798 before a reversal. However, upside potential is limited compared to downside risk.
It seems likely that we?ll see a decline backl towards the former 4th wave at 1.3568 next week. Coming under 1.3731 instills confidence in the near term bearish case.
[B]Strategy[/B]: Sell break of 1.3731, against swing high (currently 1.3798), target 1 is 1.3568, additional bearish potential below there