EURUSD broke sharply lower last week after a break through the trend-line support connected from April lows. This break usually leads to a continuation of a larger trend which in our case is down. For now, decline from the high is still in three waves, but we will go with one-two one-two scenario because of a larger bearish view for the EUR. With that said, we are bearish now and expect 1.2935 break that will put 1.2800 level in play for this week. Resistance for current wave (ii) comes in at 1.3030 followed by 1.3070.
On the other-hand, we will turn bullish only if we see an impulse back up to 1.3130 that will make wave (2) rally even more complex.
For more analysis visit us at http://www.ew-forecast.com/service/