The bull flag correction we laid unfolded according to plan and now an a-b-c pullback is complete. This is either wave-(4) or B and in both cases the implications are that a new high is on the horizon and will carry prices beyond 1.3650. Wave-(5)=(1) at 1.37 and represents the next target after a new breakout.
S/t, resistance via the flag downtrend is at 1.3575 which can lead to a sharp move to the next pivot at 1.3609. In order for our renewed bullish outlook to remain in force we expect prices to hold above 1.3540 support. Levels: Support – 1.3540, 1.3505, 1.3460 Resistance – 1.3575, 1.3609, 1.3646
Read the full report: EURUSD
Nomura