Euro Technical Outlook

Staying below 1.4181 keeps the trend pointed down. The series of lower highs and lows since 1.4340 may be a series of 1st and 2nd waves. Under this scenario, the next decline will be a third of a third (powerful). It is also possible that the current decline is wave 4 of a diagonal from 1.2454 (alternate labels). I wrote yesterday that “a push above 1.3935 may be required in order to complete the small second wave from 1.3747. 1.4010/30 should provide resistance in such an event.” Price has exceeded 1.3935 and is approaching the 61.8% of the former decline, which is at 1.4015. If reached, expect stiff resistance near there.