FX:EURUSD   Euro / U.S. Dollar
Following on from last week's short trade, it appears that either we have the low at the end of 5 wave decline or will be retested to complete. Base on the RSI appear to suggest that the 5 wave decline is complete by a break in downtrend line corresponding to similar breach in downtrend line in price. Once this low is in place we should expect retracement in the form of a,b,c zigzag to the upside to 50% - 61.8% Fib retracement of the drop. Hence we can begin to monitor the price action at these levels to confirm potentials for price reversal as we want to short in this area with downside target in the region of 1.2840 1.2800 area being the potential 61.8% retracement of the move from 1.2660 low to 1.3120 high. 1.2807 is 1.272% Fib extension of the move from high @ 1.3120 to last weeks low @ 1.2875. This is our first sketch, and will be able to refine it based on subsequent price action but feel could be in play around midweek. Do you homework to confirm and let me know what you think. Thanks for viewing the chart