The Euro is very near the triangle target and 2008 downtrend resistance at 1.3846 and this also aligns with minor channel resistance from February. The expectations from current levels is for a move lower towards 1.36 and possibly lower to triangle support near 1.3550. S/t, the breakout above 1.3773 still represents support and below there could see further weakness to 1.3727. Minor channel support surfaces today at 1.3680/70. The alternate outlook, that prices have topped in a complex wave-(2) correction, also implies weakness in the coming sessions. Conviction: Med Levels: Support – 1.3773, 1.3727, 1.3680 Resistance – 1.3797, 1.3825, 1.3846
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Nomura