The consolidation we laid out last week is still underway. Above the 13.20 retracement zone, prices are forming a bull triangle as wave-(4) in an uptrend from December. Once this range completes will shift our focus to a final thrust higher to our long-term target zone of 13.83/93, (daily) S/t, the hourly chart focuses on the recent choppy range and the 2 main options for the correction. Our bias is that this is a triangle and the current wave-C decline will be followed by 2 more swings before and eventual rally. The second is that a deeper wave-C decline to ~13.20 can complete the correction in a more timely manner but this is not our base case. Look for support to surface at 13.30/28 today; resistance is 13.38. (hrly) Conviction: Med/High Trade: Flat. Levels: Support – 13.30, 13.28, 13.17 Resistance – 13.38, 13.55, 13.60
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Nomura