The a-b-c correction we have been outlining continues to unfold lower as negative technical developmentsbuild. The trend line from early September is broken (and has already been tested), the old pivot at 1.3568 hasgiven way leaving a failed breakout behind and momentum has clearly shifted to the bearish zone.
Whether this is just a wave-(4) correction or a larger decline remains unclear. In either case initial support viathe unfolding bull flag is at 1.35. The old range lows and 50% retrace (of wave-(3)) represent more critical supportat 1.3462/3448. Finally, any rallies will likely meet strong resistance at 1.3539 near-term.Levels: Support – 1.35, 1.3462, 1.3448 Resistance – 1.3531, 1.36, 1.3646
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