The euro has collapsed after rallying to within 0.0025 points of 1.4018 target I proffered here earlier. Yesterday’s low coyly missed taking out an important bottom at 1.3644 recorded on February 27 (see inset), but it seems doubtful that this structural support will endure. Even so, a rally followed by a ‘b-c’ pullback from just above the 1.3773 peak I’ve highlighted could yield a low-risk buying opportunity, camouflage-style. We’ll have a better idea whether bears are serious when we’ve seen how the C-D follow-through leg of the big pattern performs. ______ UPDATE (June 2, 11:10 a.m. ET): The plunge begun on May 8 from 1.3993 has a little further to go before this brick feels any lift. My downside target is 1.3560, the midpoint pivot of the pattern shown. It is not as attractive for purposes of bottom-fishing as the target I’ve proffered in the Swissie because it coincides with a key low recorded in early February. _______ UPDATE (June 6, 12:10 a.m.): The Whoopee Cushion bounce from yesterday’s low was nasty, but until such time as it tops 1.3734, a bearish target at 1.3386 will stand. _______ UPDATE (June 10, 1:20 a.m.): Interpolating for the SEPTEMBER contract, my minimum downside projection for the near term is 1.3396. If it’s decisively breached, however, I’d infer more downside to as low as 1.3198 is coming.
