We are still awaiting a break above 100.61 to register the first significant higher high since last May. Based on the recent triangle breakout and impulsive rally from 96.57 our outlook remains bullish to 104/106. From the lows of 96.57, the wave count is unfolding as 1-2-(i)-(ii)…which means that the current wave-3 is extending as is expected in this position. For this week we are looking for a rally above 100.40 to confirm what we view as a wave-(iii) rally; the target zone based off Fibonacci extensions ranges from 101-101.75. Critical support is 99.80 and that level has now acted both as resistance and support. Levels: Support – 99.80, 99.60, 99.11 Resistance –100.40/61, 101, 101.75
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Nomura