Euro Large B Wave Correction

Commentary: Little to add to the EURUSD as last night/this morning?s rally came within pips of 1.3684. Potential does remain for a push to the 1.3750 area before a reversal. However, the advance from 1.3360 has stalled near the 61.8% retracement from the top (1.3852) to 1.3360. The idea that a larger more complex correction is playing out from 1.3852 strengthens each day that the EURUSD fails to make a new high.

As we have decribed in recent days, our favored view is that the decline from the top (1.3852) is large wave A and the advance from 1.3360 is large wave B (which may be complete at 1.3684). Large wave C is expected to eventually come under 1.3360. This decline will most likely be extremely fast. At this point, a cautious bearish bias is warranted below 1.3684. A break of 1.3563 instills confidence in the bearish bias.
Strategy: Flat, bearish on a break below 1.3563