Euro Rolls Over

The reversal that we have been looking for may be underway (see Compelling Evidence for a EUR/USD Reversal for more). Last week’s candle was a shooting star and daily RSI has rolled over from above 70.

The EURUSD has come into initial support at 1.3560. Additional bearish potential increases with 5 waves down and so far there are only 3 waves down from 1.3637. If the larger trend has reversed, then we should see some consolidation/bounce in a 4th wave before a new low under 1.3549. 1.3586 is key resistance.