The EUR/USD has completed a double top as you can see on the daily chart.
The 1.3672 support was broken along with a rising trendline from Nov. 2013. This shows a shift from a bullish trend to a neutral and possibly bearish one.
Even though a top seems to have formed, and a bearish market looks pending, we might want to wait for a pullback for two reasons.
1) Better entry in terms of price.
2) Better entry in terms of 4H and daily RSI reading. It may be prudent to wait for oversold conditions to be resolved before adding short positions.
3) A pullback that fizzles below 1.38 should help confirm the bearish market.
We can watch the 4H chart for a pullback.
At the moment, there is a bullish divergence forming with the RSI, which makes it unattractive to add short positions here. If short-term traders do try to buy up the EUR/USD off oversold conditions, monitor the RSI when it approaches 60. If price also stabilizes in the near-term when the RSI nears 60, get ready to short.
A bearish correction scenario has downside toward the 1.3475-1.35 area.
Earlier: USD/CHF Double Bottom; Price above 200-day SMA