Since our 1.3245 short entry last night, EUR/USD has put in 3 solid waves down to this afternoon's 1.3159 low. The fourth of the 5-wave sequence is currently underway and should face resistance ahead of 1.3200 before the fifth and final leg brings us down to the 2.618 projection shown at 1.3130. If you are still short a 1.3245 piece from last night, bring your stops to tonight's stop level. For those re-entering the market, look to get short EUR/USD at 1.3185, 1.3195, and 1.3205 with stops just above 1.3220. Unlike last night, book anything you're short at 1.3130 as a new 3-wave up should begin here.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.