Still awaiting a resolution lower from the upward sloping bear flag correction. Last night prices tested the 61.8% retracement of wave-(1) down at 1.3636. We have been focusing on the fact that this correction is taking place at the underside of the July uptrend line and while RSI is stuck below the 60 level. S/t, a break of the latest uptrend followed by pivot support at 1.3526 is required to resolve the bear flag pattern. Also important to confirming the turn lower is to see a 5-wave decline on the 30min/60min charts. For today look for strong resistance between 1.3626/36 with key support at 1.3526. The latter is the go with level for new shorts. Levels: Support – 1.3580, 1.3526, 1.3510 Resistance – 1.3626, 1.3636, 1.3711
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Nomura