Euro Technical Outlook

The EURUSD has extended higher and is closing in on 1.60. A push through 1.5904 would make the rally from 1.5146 5 waves and possibly complete the entire rally from 1.4438.

We say this because the rally from 1.4438 can be divided into 5 waves itself as shown on the chart above. 1.5914 (just above the Monday high at 1.5904) is where wave 5 (from 1.5282) would equal 61.8% of waves 1 through 3. In summary, it appears that the EURUSD is headed to a new high. Coming under 1.5612 would suggest that a top is in place.