The head & shoulders pattern resolved as expected below the 1.3860 neckline. The strong decline since has also taken prices below an uptrend from Feb and this confirms the major wedge resistance that halted the rally just below 1.40. A change in trend is taking place and the new downtrend is in early stages. (daily) S/t, key levels at 1.3860/25 are now resistance and the next support level is 1.3714. The hourly RSI, showing no divergence, is signaling that this wave-iii decline from 1.3943 is incomplete; expect still further declines before a minor consolidation. (hourly) Conviction: Med / High Levels: Support – 1.3721, 1.3708, 1.3643 Resistance – 1.3810, 1.3845, 1.3880
Read the full report: EURUSD
Nomura