Euro Gets Hit

We wrote yesterday that "we continue to look for the bigger turn due to the sentiment extreme (as evidenced by COT). The rally from 1.3462 has stalled at the 61.8% of 1.3680-1.3462 at 1.3597 (the high is at 1.3609) and hourly RSI has rolled over from above 70, suggesting that we will see at least a pullback.

The long candle on the 240 minute chart (see below) also warns of additional bearish price action." The EURUSD turned lower and fell hard yesterday in a small 3rd wave. The consolidation since is a 4th wave and a drop under 1.3504 would complete 5 waves down from 1.3609. We will look for consolidation/bounce following a drop under 1.3609 in order to align with the downtrend. Price is under the 20 SMA, which is rolling over and exhibits negative slope.