Euro broke below what we thought was a critical support shelf at 1.3022/02 only to create another trap. The trendline lower from the double top high at 1.32 has been bettered and leaves behind a bull flag on the hourly chart and suggest the path of least resistance for the coming days is for higher Euro. S/t, there is minor resistance and bearish divergence that can cap this rally at 1.3084; beyond that level more important resistance surfaces at the old 1.3138 pivot. On the downside the latest break/retest at 1.3034 is initial support. Levels: Support – 1.3034, 1.3029, 1.2974 Resistance – 1.3084, 1.3138, 1.3200.
Natixis