The 1.3833 level is important topside resistance based on highs that date back to last year; it is also the ideal target for wave-d of a possible triangle and finally resistance from a 2008 downtrend line. The case for short Euro’s against the 1.3833 level is still valid and can see a minimum drop towards 1.36 as wave-d lower unfolds. (daily) S/t, 1.3733 has been a strong resistance point since Feb 18 and again halted a rally today; a break of 1.3733 is the first signal that higher levels can unfold. Downside support today 1.3708 and then the channel uptrend lines between 1.3699/82. Our bias is for a move lower still in Euro. (hourly) Conviction: Med Levels: Support – 1.3708, 1.3699, 1.3682 Resistance – 1.3733, 1.3833, 1.3839
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Nomura