"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?)," GS argues.
"At this point it seems reasonable to take a neutral stance until further signal develops," GS advises.
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eFX compare this with the view from Nomura:
EUR/USD is in the process of correcting the 1.17 to 1.11 decline, notes Nomura Techs.
"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," Nomura argues..
"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
an then the recent pivot high at 1.1374," Nomura adds.
All in all Nomura is looking for for a small decline in EUR/USD followed by a strong bounce to new highs.
