From a technical point of view, the euro (EURUSD) did enough during August for analysts to say it had completed its major (long-term) 3-wave downtrend. The August low of 1.1664 was below the Wave A (first wave) low of 1.17035 from March 2021 fulfilling the requirements of consecutive lower highs (Wave B at 1.22659 from May 2021) and lower lows. August also saw a test of the downside target of 1.16947, the 38.2% retracement level of the previous major uptrend from 1.06362 (March 2020) through the high of 1.23490 (January 2021). And considering the fundamentals of the US dollar index remain incredibly bearish, the assumption is the EURUSD is more fundamentally bullish meaning this major downtrend could be held to the 38.2% to 50% retracement range. As Hamlet would say, “Aye, there’s the rub…”, for monthly stochastics remain well above the oversold level of 20% as we move into September. This keeps the door open for an extended selloff down to the 50% target of 1.14926.