Goldman Sachs - EURUSD Breaks from Triangle; and Next Big Levels to Watch
"It is now clear that the analogy of a triangle wave 4 is no longer valid. The possibility that it’s already completed 5- waves from the May high is something to seriously consider. If this is true, it should already have started a corrective process which translates to a period of messy/counter-trend price action," GS argues.
"The final break above it should have been a big warning sign that the low may already be in place. Further confirmation was given above 1.1052-1.1099 (prior high and low from Jan. 26th/Mar. 26th)".
Next big levels to watch:
"The next big pivot is 1.1295-1.1296; this includes 23.6% retrace of the May/March decline and the 100-dma. So far it seems to be holding well, forming a tired candle on stretched momentum. Support is down at 1.1099-1.1049".
"If this is truly a correction, there should be potential to go
higher over time. The downtrend from Jul. ‘14 comes in at 1.1654.and
38.2% of the May/March decline is all the way up at 1.18".
"Put simply, from a pure techs perspective and in Elliott wave terms, this has potential to be a very big turning point".
