Euro Ending Diagonal

Commentary: We wrote yesterday that "the rally from 1.3360 appears to be in 5 waves and may very well be complete or close to complete. A correction of this rally is expected to unfold soon and bring price back to at least 1.3828.

The decline from the top is not yet impulsive so we see little reason to be bearish at current price. An ending diagonal may be unfolding in wave 5 from 1.4040. This remains a possibility as long as price is above 1.4061. One more high may complete the larger advance near 1.4200.

Strategy: Flat