EUR/USD has been trading higher last week and reached highs around 1.3400 region from where pair reversed impulsively and suggests that highs are in. As such, larger ending diagonal appears complete and is now pointing for weaker EUR/USD. We will be looking for sizable decline once 1.3180 support is taken out.

Why 1.3180 support is important? Because that's swing low of wave four, and when floor of wave four is broken this means that trend has changed and that bearish waves are underway.

Forex Analysis by Gregor Horvat at ForexPros. com