We raised the case Friday that “waning momentum [was] threatening [the] latest 1.3573 breakout”. The sell-off developed and now appears to be part of a wave-(4) correction ahead of a new wave-(5) high. As part of the larger context, we view Euro as nearly complete with a rally from 1.3100 to 1.3700, once a new marginal high is in place a larger correction can unfold.
S/t, wave-a of an a-b-c pullback is considered done from 1.3646-1.3539. The o/n rally is part of or all of wave-b and sets the stage for a wave-c decline that will carry Euro to major support at 1.3462/48. The support zone is both a 50% retrace of wave-(3) and the previous pivot/wave-4 low. Buying near ~1.3450 offers a strong r/r opportunity to benefit from the final 5thwave rally. Levels: Support – 1.3539, 1.3505, 1.3462/48 Resistance – 1.3591, 1.3607, 1.3646
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