The Euro broke key 1.3207 support yesterday and the sell-off from 1.3452 is unfolding in 5 waves. The targets for this 5-wave decline center around 1.3075; this level is the 50% retrace of the July/Aug rally and allows the waev-4 retrace to dissect the pattern at the .382 Fib level. Finally it offers equality between waves 1 & 5.
S/t, key downside support is now the ~1.3075 target zone. There is little support down to 1.2750 beyond that cluster. In order to confirm support at 1.3075, upside pivots at 1.3139 and 1.3207 need to bettered. A more substantial rally can occur above the previous pivot high at 1.3225. Levels: Support – 1.3078, 1.3070, 1.2998 Resistance – 1.3139, 1.3207, 1.3225
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Nomura