[B]Commentary:[/B] We wrote yesterday that “to favor the downside as long as price is below 1.3625. Look for a test of 1.3445 in the next few days.” A test of 1.3445 looks inevitable now as price is below 1.3500 now. The extent of the decline from 1.3838 makes it highly unlikely that this decline is a C wave.
Instead, it is much more likely that this decline is a 3rd wave. Price is likely to consolidate soon in a small wave 4 before completing the 3rd wave decline from 1.3838 (in its 5th wave). The chart above details what we are expecting to occur.
[B]Strategy:[/B] Remain Bearish, move risk to 1.3608 (from 1.3625), target 1 hit at 1.3600, next target at 1.3445