[B]Commentary:[/B] There is little change to what we wrote yesterday, although the pattern has cleared up a bit. "The decline from 1.3838 is either large wave C to complete an A-B-C correction, wave 3 in a bearish sequence that began at 1.3852, or larger wave A to begin a larger correction from 1.3852. A rally above 1.3546 would make the advance from 1.3360 impulsive (5 waves) and favor additional gains.
A rally through 1.3608 would eliminate the idea that wave 3 down unfolded from 1.3838." With the rally this morning leaving a clear 3 wave correction from 1.3546 to 1.3456, it looks as though 1.3546 will be breached. As mentioned though, once that level is broken, risk of a correction right back to 1.3456 (or lower) will is high.
[B]Strategy:[/B] Wait for a rally through 1.3546 with 1.3456 intact, then a correction back towards 1.3456 (or lower). That will offer an opportunity to get bullish.