The bull flag in Euro has not resolved higher yet as expected and it is troubling that prices are breaking the September uptrend. Although the wave-4 low appears to be in place ahead of a strong rally to 1.3645, our bullish outlook is in danger of being invalidated with a move below 1.3462.
S/t, key resistance is the recent pivot high at 1.3537 because a rally through this level will offer a confirmed bull flag resolution. Multiple targets align near 1.3645 to complete wave-(3); wave-1=5, wave-i*2.618 and the midpoint technique all target 1.3645 as a wave-(3) high. Critical to this call is the ability to hold above 1.3462.
Levels: Support – 1.3476, 1.3447, 1.3418 Resistance – 1.3519, 1.3569, 1.3608
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Nomura