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The euro managed to stabilize after the recent SNB-related falls, but it is probably not over.

The team at Nomura looks into the charts, sees a bear flag breakdown and  provides levels and targets:

Here is their view, courtesy of eFXnews:

EUR/USD’s new firm resistance zone now stands at 1.1754/1864 as the market tested the higher band but only to fail back into its major downtrend, notes Nomura.

The bear flag resolved lower in idea fashion and now extension and wave targets point lower still to 1.1350,” Nomura projects.

This 5th wave lower from 1.26 would equal wave-3 at 1.1350. Another projection technique is .618 * waves- 1 through 3 and that also yields a target of 1.1350,” Nomura adds.

Bear flag breakdown on euro dollar January 19 2015 Nomura technical analysis

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