eurusddaily

It looks like this pair has completed a 5 wave downmove off the 1.5145 high and that we are now in the throes of consolidating that move. The 38.2% retracement of 1.5145/1.3270 comes in at 1.3985 and if we can break above the steep bearish trendline (which I have coming in around 1.3600) then we should see a move back towards this level. What we should not forget is that we are in a downtrend and rallies are for selling. Moves back to 1.42/1.44 might seem unreasonable now but if pairs like EUR/JPY suddenly catch an updraft, such moves are technically quite possible.