A decline from 137.42 unfolded nicely and even stronger than we had expected. We will now look for resistance at 133.75 for a continuation lower towards 131.45. Only a break above 133.75 will indicate that a larger correction is unfolding towards 134.30 before moving lower to a target at 131.45 . As we get closer to an ideal downside target at 131.45, we are likely to see rising volatility as the battle between bulls and bears become more fair.
We are short EUR from 136.62 and we will move our stop lower to 133.80. If you are not short EUR yet, sell near 133.75 with a close stop at 133.80.
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