We have been looking for a “countertrend rally….[to] 139.43/140.17”. The A-B-C correction higher is unfolding with very clean wave forms and we are honing in on the 139.75/85 zone. This is where wave-A=C and larger Fib retracements align. A reversal or small top pattern below 140 can mark the end of a larger wave-(B) and set the stage for a continuation of the May downtrend with targets well below 138. From a wave perspective, the current wave-3 =1 at 139.75. Wave-A = C at 139.85. Critical support is 139.32 Conviction: Medium/High Levels: Support – 139.41, 139.32, 139.11 Resistance – 139.75, 139.85, 140
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Nomura