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.