As you know I think that the last week’s rise is corrective in nature and is developing as a double corrective combination which ends with a triangle. This idea suggests that the euro should stay below 1.5837 and should fall. A decline below 1.5743 from here will be a first signal and below 1.5725 will be a confirmation that the scenario presented on the chart is correct. In such a case one should expect beginning of a movement targeting low below 1.5340. On the other side a rise above 1.5837 will bring a high above 1.5858 and probably a new record high above 1.5904. Because of the possibility to put a relatively close stop loss I enter short from current levels.

Trading strategy: 08:48 EST; 13:48 GMT

Sell at market (1.5807), stop loss - 1.9841 (stop and reverse), target - open

Confidence level –low

This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.