I think that the fall started from 1.5813 (22 May) is developing as a flat correction. In such a case a low below 1.5690 should be expected in wave C. With an eye on this idea I entered short position on Friday. It is clear from the chart that I count wave B of the suggested flat as a complex corrective combination which ends with a triangle. This idea suggests that the euro will stay below 1.5770 so I move the stop loss of the short position to this level. On the other side a rise above 1.5770 should bring a high above 1.5793, but only above 1.5813 will be a bullish signal.

Trading strategy: 07:46 EST; 12:46 GMT

Short position from 1.5775, move the stop loss from 1.5820 to 1.5770, target - 1.5690

Confidence level – medium

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