Our idea of a wave-(4) correction still stands but we have shifted in terms of degree; this pullback is likely countering the wave-(2) correction from February. Prices have entered the area of the previous 4th wave between .9304/.9206 which is a common pullback zone for wave-(4)’s. A more pronounced move lower could target a cluster of Fib retracements at .9160…this is also an extension of the initial wave-a decline. (daily) S/t, wave-A has already realized a 38.2% correction leading to a fresh decline. Channel support is containing this decline but we expect rallies to be met with selling pressure. Downside extension targets are .9239 and .9152. Key resistance is now .9316 and minor support is .9271 (hourly) Conviction: Med / High Levels: Support – .9271, .9239, .9160 Resistance – .9296, .9316, .9377
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Nomura