Thursday we wrote that we were “expecting a wave-(b) or 5 low near 1.24/25 this/next week”. The move to 1.2358 was 1.382% x wave-(a) which is an ideal target for our proposed wave-(b) low and the rally so far promotes our outlook for a substantial squeeze in the coming weeks. A move back to 1.29/30 can mark wave-(c) of 4 or in the alternate case, a wave-(2) correction of the entire decline from 1.40. S/t, resistance is 1.2501 initially. Minor pivots at 1.2533 and 1.2577 are less critical than 1.2625 which will raise conviction further that a larger rally is unfolding. Support is 1.2422 and 1.2355. Other evidence of a building bottom are bullish momentum divergences and the extreme sentiment readings from last week that matched the bearishness first seen in October. Conviction: Med/High Levels: Support – 1.2422, 1.2355, 1.2260Resistance – 1.2533, 1.2577, 1.2625
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