The Friday/Monday reversal in Euro was a strong signal that prices are attempting to mark a near-term bottom. Along with the proper bullish divergence, prices also bounced from channel support. Finally, the decline from 1.34 now has satisfied 5-waves to complete a larger wave-3. Going forward we’ll look for a corrective wave-4 to unfold as a countertrend rally. (daily) Shorter-term, since wave-2 was a shallow, time-consuming range, our default for wave-4 will be to look for a sharp but quick correction (possibly an a-b-c zigzag). Corrections can take so many forms so it is too soon to anticipate this wave-4 but the signals will develop this week to favor a flat, zigzag or triangle. (240min) Conviction: Med Levels: Support – 1.2570, 1.2501, 1.2382 Resistance – 1.2675, 1.2700, 1.2755
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