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.
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.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.Get the 5 most predictable currency pairs