On Friday, I wrote that “a deeper correction of the 1.3877-1.4871 advance is preferred although structure is not clear at the moment (it rarely is during a correction). If the decline extends, then look for support at the short term trendline and 1.4250 (the 61.8% of 1.3877-1.4871).”
The EURUSD has dropped below the trendline and is nearing the 61.8% Fibonacci. The decline is probably the second leg of a 3 wave correction from 1.3877. It is possible that a top is in place at 1.4871 and that a longer term decline is underway. As such, we’ll look for clarification.
