A look at the daily chart suggests that prices are rallying in wave-D as part of a late stage triangle. The downtrend & extension target zone for this leg of the coil are 141.50-142.90. Near-term we do expect a pullback before prices resume the march higher. (daily) It’s the corrective action since Tuesday’s high that implies another drop today/tomorrow. So far, prices have witnessed a choppy decline for wave-a and a choppy rally for wave-b; ideally we are now in the throes of a sharp wave-c towards 138.68/02. It’s from these lower prices that we expect to see the larger wave-D rally continue. (240m) Conviction: Medium/High Levels: Support – 139.39, 138.68, 138.02 Resistance – 140, 140.10, 140.95
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Nomura