Early last week we highlighted the completed 5-wave decline in Euro and proposed a rally towards 1.3480/3515. This rally, expected to unfold as a correction, can mark wave-4 (or (ii)). Strong resistance surfaces at the old breakdown lows of 1.3480 & 1.3515; the 38.2 & 50% retracements align close to these old pivots confirming the resistance zone. From an Elliott perspective, the a-b-c rally off the lows sported a common 1.618 relationship and the pullback so far has retraced 50%. Another similar sized rally projects to 1.3483 which is corroborated by the aforementioned pivots & Fibs. Conviction: Med/High Levels: Support – 1.3383, 1.3333, 1.3300 Resistance – 1.3415, 1.3433, 1.3480
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