We have and continue to view 1.3893 as a significant top based on the key reversal at pivot & trendline resistance (there were also a series of extension targets at 1.39). The decline to 1.3550 marked the initail wave-1 decline and the a-b-c flat correction completes wave-2; under this analysis a larger wave-3 decline is ahead and can take the Euro towards extension targets between 1.34 & 1.32. (daily) S/t, the final wave-c rally within the larger wave-2 is still holding the Feb up channel but showing signs that a 5-wave structure is in place. A break of channel and pivot support at 1.3680 will signal that the rally is complete. For today, resistance is 1.3725 and key support is 1.3680 for a 1.3680/3725 expected range. (hrly) Conviction: Med Levels: Support – 1.3680, 1.3653, 1.3564 Resistance – 1.3725, 1.3763, 1.39
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Nomura