There are three waves up from 1.2750 low on the EUR/USD, representing a corrective, contra-trend price action within a larger downtrend.

This is blue wave (2) which is now showing signs of completion around the 1.3420 level after last week's sharp decline - which is an impulsive move. We expect further weakness over the coming days and weeks, ideally back to the April low.

Forex Analysis by Gregor Horvat at ForexPros. com