The Euro remains locked in a bearish consolidation between 1.3000/3150; because this range follows a clear downtrend, odds still favor a resolution to the downside. There is also a bearish rounded-top that began in January from the key 1.2998 level that further supports the bearish technicals. S/t, the ability to hold above the Jan lows leaves open the idea that the Euro might try to carve a right-shoulder to complete a textbook head & shoulders top. BUT, In order to promote this case, prices must rally through the February down channel at 1.31 followed by a continuation above range resistance of 1.3150. If support gives way at 1.2965 we expect a sharp decline to the next cluster of Fibo support at 1.2883/66. Levels: Support – 1.2965, 1.2883, 1.2866 Resistance – 1.3025, 1.3100, 1.3150,
Nomura