Yesterday we wrote that “the right divergences are in place for a bottom to form in Euro but still in need of a channel break to raise conviction for an upward correction”. The down channel is still clearly intact and new momentum lows on the 240min chart suggest that wave-(v) of V is still forming. The much heralded 1.2755 support is now new resistance. In order to consider this decline complete, we’ll need to see a 5-wave rally on some smaller time frame. For now, channel support is 1.2635; we expect to see a continuation lower near-term to complete the 5-wave move from 1.2900. Conviction: Med Levels: Support – 1.2826, 1.2810, 1.2755 Resistance – 1.2900, 1.2925, 1.2981
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