Violent decline through channel support is best viewed as “wave 3 of 3” in Elliott terms and that implies more downside ahead. The next meaningful downside target is the June ‘13 low at 1.2755. (daily) S/t, from the wave-4 triangle high everything lower is impulsive (no overlap). There is now little support and much overhead resistance; particular resistance surfaces at recent breakdown levels of 1.3110, 1.3153 & 1.3242. We are expecting a wave-4/iv correction following to retrace a portion wave-3/iii; near-term retracement zone is 1.3016/68. Conviction: Med/High Levels: Support – 1.2920, 1.2755 Resistance – 1.3016/68, 1.3110, 1.3153
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