The bull triangle failed to carry EUR higher and was likely part of a larger downward correction. The daily chart has yet to make either a lower high or lower low and short/long-term trends are still intact. In order for that to remain the case prices need to hold the latest key pivot above 1.3308; there was also a 2-week consolidation in that zone that can support any further pullback. The bearish alternative, that a meaningful top was made this week, will be promoted to the base case below 1.33. (ch1) S/t, the sell-off has been sharp and impulsive to the downside so there is danger that this part of a larger unfolding trend. Downside targets are between 1.3380/44. One more push lower towards 1.3344 would complete a 5 wave sell-off from 1.3596 and could set the stage for a new rally. Bettering the 1.3462 low is key to confirming that this correction is complete. (ch2) Levels: Support – 1.3380, 1.3344, 1.3308 Resistance – 1.3462, 1.3494, 1.3596
Nomura