The Euro has now corrected to the previous consolidation zone between 1.3248/50 and has since tested the first fall to 1.3264. This level is expected to hold as strong support and act as a base for the next rally. S/t, momentum indicators have begun to bullishly diverge from price concurrent with the retest of the 1.3264 low. The sloppy trade since topping out Friday is indicative of a correction but a move through upside resistance at 1.3336 is needed to confirm that this Wave-4 is complete. A rally through 1.3336 can then unfold as a Wave-5 towards upper channel resistance at 1.3480/90 where a larger 50% Fibo ratio will align to stall the rally. Levels: Support – 1.3262, 1.3248, 1.3167 Resistance – 1.3336, 1.3386, 1.3404
Nomura