A EURUSD trade is setting up for bears. The rally from 1.3876 was in 3 waves (corrective) and may have actually completed a complex correction from 1.3925. The decline from 1.4057 is impulsive, which suggests that the larger trend is down. Expect a recovery during the Asian session in order to correct the 5 wave decline. Initial resistance is 1.3962. 1.4000 is the 61.8% of the decline from 1.4057. In summary, expect a recovery back to 1.3960-1.4000 prior to resumption of the larger downtrend.
