This minor 5th wave (roman numeral “v” shown in fuschia) is completing an ending diagonal pattern against parallel channel resistance with significant momentum divergence - all very bearish developments. I do have an alternate count that allows for a move to 1.3840, at which time I would get very bearish EUR/USD, but the count shown is my preferred. My trigger is a 1.3765 break that brings wave 4 in a choppy, drawn-out move towards 1.3700. Typically 4th waves are complex, choppy, and difficult to trade.

Unfortunately, our USD/JPY offers were a bit too high last night to get us short for today's nice sell-off. Enjoy the weekend and see you back here Sunday night.



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

Disclaimer
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.