To recap, we are short Euro based on the sharp 3/13 reversal at wedge resistance; this turn coincided with a confluence of resistance on the weekly chart as well. The sell-off from 1.3967 has been labored so our wave count has been adjusted to account for this. The series of wave-1 & 2 declines is in need of a sharp wave-3 in order to promote the idea of a long lasting trend change. S/t, the 4-hour chart is working on a right shoulder to complete a head & shoulders top with neckline support at 1.3705. A break of that support projects further weakness to 1.3444 which would offer a new low. Nearer-term the wave-iii extension target is 1.3544. Key resistance is 1.3876. Conviction: Med / High Trade: Short at 1.3791 (avg) ; sl 1.3955, tp 1.3315. Levels: Support –1.3773, 1.3725, 1.3705 Resistance – 1.3820, 1.3876, 1.3943
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Nomura