Euro Technical Outlook

We wrote Friday that “even if wave 4 is still forming, higher prices are a high probability next week as wave 5 is required to complete the entire bull cycle from 1.4438. Objectives lie above 1.5400; there are 261.8% extensions at 1.5429 and 1.5447. We will look for a top and reversal near there.”

Our count favors the idea that wave 5 within the 5 wave rally from 1.4438 is underway now. Wave 5 would equal wave 1 at 1.5391, not far from the mentioned objectives of 1.5429 and 1.5447.