EUR/USD Tech Review: 'correcting to 1.11' by Nomura; 'it isn’t very clear' by Goldman Sachs
15 September 2015, 15:11
2
1 580
Nomura made a forecast for EUR/USD stated about correction for this pair to 1.11 :
-
"It is complex correction that is expected to complete
via 2 a-b-c rallies, currently the latter stages of the second a-b-c
are unfolding. A rally from near 1.13 to 1.14 can complete the larger
wave-B."
- "S/t, support via old pivots and an uptrend line is between 1.1300/1288, more critical support below is 1.1254. Resistance is 1.1340 and then the recent pivot high at 1.1374."
By the way, Goldman Sachs noted that the setup in EUR/USD isn’t very clear:
-
"A complete correction should retrace within wave 4 territory and near
38.2% of the preceding trend. In this case the high at 1.1713 is near
enough to 38.2% at 1.18 and actually exceeds the 4 th wave
(1.1533-1.1099). Moreover, an ABC extension from the March low targets
1.1818 (again, near enough?)."
- "At this point it seems reasonable to take a neutral stance until further signal develops."
Anyway, as we see from daily chart - the price is located near above 200 day SMA with 1.1372 resistance level to be ready for two scenarios to be implemented:
- bullish trend will be continuing by breaking 1.1372 resistance with 1.1713 as the next bullish target, or
- the price will be reversed to the bearish trend by breaking 1.11/1.10 support levels.
