The correction zone acted as strong support yesterday between 1.3248/80 and likely saw the completion of a Wave-4 correction. Euro is back in to the Monday/Tuesday congestion zone we expect firm resistance at 1.3404 to stem some of the already impulsive action that is part of the small wave-5 up. S/t, the first upside target is the recent high at 1.3404. Beyond, channel resistance aligns with the 50% retracement of the 2011/12 sell-off at 1.3491 today. In the case of an extension and break of 1.3404, prices could achieve this more aggressive target. Levels: Support – 1.3336, 1.3325, 1.3257 Resistance – 1.3395, 1.3404, 1.3491
Nomura