The bear flag rally continues from the 1.33 lows and last night the break above 1.3548 resistance failed. Still a lower low is needed to suggest that the large A-B-C correction is complete. Wave-(1) was the fall from 1.3832-1.3442 and the range since has completed wave-(2); a sell-off to mirror the initial decline targets a minimum move to 1.3190. S/t, the first support level is where pivot lows and the channel uptrend align at ~1.3495 (just below minor uptrend support at 1.3517). Sales at current levels can use last nights false breakout high at 1.3579 as a stop loss. Initial targets for this week are 1.3433/19 but we expect wave-(3) to carry prices to new lows in the coming week(s). Levels: Support – 1.3517, 1.3495, 1.3433/19 Resistance – 1.3548, 1.3579, 1.3590
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Nomura