Yesterday’s rally found firm resistance just below the expected ~1.34 level. The five wave rally from 1.2998 is coming to an end with most if not all of the upside realized. Bearish momentum divergences are already present but we do expect one more small rally to complete a 5 wave move. S/t, EUR should continue to find support at the key 1.3336 pivot; below there is ample support from the 2 previous corrections between 1.3280/50. The first sign of a rally to new cycle highs comes on a break of 1.3370. The target for this rally is between 1.3425 (a symmetry target) and 1.3500 (upper channel resistance). Levels: Support – 1.3336, 1.3280, 1.3250 Resistance – 1.3370, 1.3425, 1.3500
Nomura