The 1.3675 break has left Euro below the wedge uptrends and the April pivot. The 1.3586 low is either wave-1 or (i); the former calls for a rally back to 1.3680 before the next leg down, the latter suggests that a new decline is ready to unfold. Strategically, trend and momentum indicators both point lower but prices are currently stuck in a range between 1.3586/3650. (daily) S/t, there is a negative RSI reversal set-up that suggests a breakdown early this week; the target is 1.3578. The reversal comes as RSI tested the upper limits of the bear range at RSI 60. For now we expect a range-bound market to continue early this week between 1.3578/3650. (4h) Conviction: Med Levels: Support – 1.3594, 1.3586/78, 1.3538 Resistance – 1.3621, 1.3650, 1.3680
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Nomura