Yesterday we highlighted the bearish wedge and long-term wedge resistance; the Euro staged a bearish shooting star reversal confirming the key level and the end of a 5-wave rally from 1.3643. The reversal also confirmed channel resistance from late February. So far it appears that a small impulsive decline is complete as is the initial correction. S/t, the rally o/n has retraced 38.2% and can set the stage for the next decline. A support level is forming at 1.3846/3832. A break below shifts focus to more aggressive downside levels at 1.3774 & 1.3700. Resistance for today is at current levels near 1.3892. Conviction: Med / High Levels: Support – 1.3846/32, 1.3774, 1.3700 Resistance – 1.3892, 1.3910, 1.3967
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Nomura