Euro Technical Outlook

We advocated yesterday to take some profits off given the potential for a large decline in the EURUSD.

Still, there is no evidence to suggest that the EURUSD rally is complete so we maintain a bullish bias. The preferred count treats the rally from 1.5364 as a third wave within the 5 wave advance from 1.5283. Under this count, targets are not until above 1.6018. The alternate treats the rally from 1.5364 as a C wave in either a flat or a triangle (in a triangle, the rally from 1.5364 is wave c of B); which probably ends no sooner than 1.59 (equality with wave A). In summary, remain bullish. The EURUSD has dropped below yesterday’s stop point, but we now have the opportunity to get bullish at a better price against 1.5364.
STRATEGY: Bullish, against 1.5364, target above 1.5834