We presented the longer term count yesterday and wrote that “our best longer term count treats the decline from 1.5904 as wave 4 (within the 5 wave advance from 1.2865) of III (within the 5 wave advance from 1.1638). Typically, 4th waves retrace about 38.2% of wave 3 of the same degree; that would place the EURUSD near 1.4894.
Another common occurrence is for price to come back to the center of the triangle that the break occurred from. That places the EURUSD near 1.4650 (very close to the 50% at 1.4582).” The near term picture confirms our long term count. That is, 5 waves down are complete and a 3 wave correction may also be complete at 1.5673 (area of former 4th wave), which is shown above. Still, the count is bearish as long as price is below 1.5895.