Last week’s deep wave-2 retracement nearly negated our bearish Euro call but failed at the underside of 2 channels, the first being a bear flag from Nov and the second the much larger up channel from July. With the deep wave-2 correction considered complete a wave-3 of (3) decline can carry to a new low at 1.3268. S/t, resistance is last week’s high at 1.3558. A break of 1.3487/77 will produce an overlap that can confirm the rally from 1.34 was just a sharp correction . More formidable support then surfaces at 1.3433/19 again. We have been and remain bearish Euro, above 1.3560/80 negates this outlook. Levels: Support – 1.3487/77, 1.3433, 1.3419 Resistance – 1.3540, 1.3560, 1.3579
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Nomura