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What is the next move for EUR/USD? The team at Nomura sees the pair trading trading in a triangle. For cable, they paint a Wave 5 target.

Here is the analysis:

Here is their view, courtesy of eFXnews:

Yesterday’s sell-off in EUR/USD met Nomura’s 1.2620 target but the break below negated its small bullish triangle outlook.

“Bigger picture, we still view Euro as in the midst of a wave-4 correction; our next best fit for this range is a larger triangle that can continue to mark time in a shallow range,” Nomura argues.

S/t, a rally back through 1.2620 can signal a new leg up (wave-(c)) in the triangle and the target is 1.2795,” Nomura projects.

EURUSD triangle October 31 2014 technical analysis for euro dollar trading

Meanwhile, Nomutra notes that GBP/USD continues to honor the downtrend line from mid July.

“Having just completed a bear triangle at the latest 38.2% retrace, the path of least resistance is again lower,” Nomura argues.

“The ultimate wedge target zone for this final wave-(5) down is near 1.58,” Nomura projects.

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