Technical summary:

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.

Trading recommendation:

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.