[B]Commentary:[/B] We wrote yesterday that “a test of 1.3445 looks inevitable now as price is below 1.3500 now. The extent of the decline from 1.3838 makes it highly unlikely that this decline is a C wave. Instead, it is much more likely that this decline is a 3rd wave.” Price dropped right through 1.3445 to test 1.3360 this morning.
We maintain that the decline from 1.3838 is wave 3 within a larger 5 wave decline from 1.3852. Larger wave 4 should begin to unfold soon. Near term resistance is at 1.3447. Since a 5th wave is still to come, there is little chance of a significant bottom forming at nearby levels.
[B]Strategy: [/B] Bearish target hit at 1.3445 (waiting for wave 4 retrace in order to get bearish)