The weekly and daily trends have turned down in the Euro. This comes after a major reversal (failed 1.39 breakout) at key long-term resistance. Together this analysis supports our bearish stance and we continue to look for a downtrend to unfold towards 1.33…1.32. (weekly) S/t, from a wave perspective, waves-1 & 2 are complete and that means prices are currently in the wave-3. The break of 1.3526 keeps bears in control on the intraday charts and the short-term wave count implies another new low in order to complete 5-waves from 1.3739. The next extension/pivot targets align near 1.34. Conviction: Med/High Trade: Flat. Look to be short now that wave-(2) correction complete. Levels: Support – 1.3477, 1.3409, 1.3400 Resistance – 1.3526, 1.3550, 1.3580
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Nomura