The Euro, having reached the limits of an acceptable correction at the 76.4% Fib, has declined only modestly from the 1.39 level. The decline held above the 50% retrace of April’s rally and therefore it can still be considered just a pullback in an uptrend. The last 2 days have traced a 3-wave rally so a move below 1.3789 is critical to promoting the larger bearish outlook. (240min) S/t, the key range for today is 1.3865/3789; we favor a break of the latter and that can confirm a new wave-3 decline. A move through 1.3865 will support, another move to 1.39 at a minimum. A break of 1.3840 is the first signal of a move to the bear flag lows at 1.3815. Conviction: Med Levels: Support – 1.3840, 1.3815, 1.3789 Resistance – 1.3865, 1.3900, 1.3967
Read the full report: EURUSD
Nomura