Prices are rallying from yesterday’s proposed target zone. The sell-off from the triangle completed a clean 5-wave decline and produced a double bottom at 100.76. We have added a more bearish Elliott Wave count to address the broken 2012/13 trendline & the rounded top breakdown; the end of this second a-b-c decline can alternatively be marking the end of wave-3 of (3) in more pronounced downtrend. (240min) S/t, important resistance is expected near 102 because that would represent a retest of the latest triangle breakdown and a retest of the 2012/13 trendline. A failure below 102 and subsequent break to new lows ushers the rounded top target in the low 98’s. Levels: Support – 100.76, 99.85, 99.55 Resistance – 101.67, 102, 102.41
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Nomura