NEW YORK ( TheStreet) -- Euro/U.S. dollar reversed sharply to the upside after 1.3266 lows were established in the last week of trading.

The structure of that upward move could be an impulsive wave which suggests this move is a part of some larger corrective A-B-C play, or even start of a new temporary bullish trend, if the blue wave (5) low is already in place.

Currently, the red wave A)/1) is searching for a test of resistance, from where a short pullback in wave B)/2) will be seen, before wave C)/3) reaches higher levels. From a longer-term perspective, the pair remains in short mode as long as 1.3817 resistance holds.

The LFBCharting EUR/USD.

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