As the correction from 1.34 completes, a key support has been established at the Fibonacci and pivot low level above 1.3260. Wave-I from 1.30-1.34 is consolidating but once complete we expect a similarly strong move towards 1.36 as this larger Wave-C approaches our target zone near 1.37/38. S/t, a move through 1.3360/66 enforces the idea that the correction is complete as that would carry Euro above bull flag resistance on the hourly and back through the high of the first 2 weeks of the year. Near-term support at 1.3278 is expected to hold any pullbacks as a new uptrend begins. Momentum has held above the bullish 40 zone which is typical of a bullish, sideways consolidation. Levels: Support – 1.3278, 1.3267, 1.3260 Resistance – 1.3360, 1.3367, 1.34
Nomura