Euro Tough Time at 1.3800

[B]Commentary:[/B] We wrote Friday that “the EURUSD could test 1.3800 again today before bearish potential comes to the forefront. We say this because the rally from 1.3731 may be tracing out an ending diagonal. If this is the pattern playing out, then we should see a spike through 1.3798 before a reversal.”

The EURUSD spiked to 1.3813 Friday and currently rests below the figure. It seems likely that the next move of consequence will be a decline back towards the former 4th wave at 1.3568 Coming under 1.3731 instills confidence in the near term bearish case but only an intial 5 wave decline would signal that the trend has reversed.

[B]Strategy:[/B] Flat