General overview for 01/08/2013 11:00 CET:
The highly anticipated low for wave X at 1.0245 level has been hit and this might be first clue that a larger bullish impulsive cycle should start to develop now. Currently the price is consolidating around Weekly Pivot level at 1.0296 and this level will act as a resistance for the pair. The grey rectangle SUPPLY area must be broken to confirm further gains and the next resistance would be wave (iv) high at 1.0333 and WR1 level at 1.0338.
On the other hand, if 1.0263 level will be broken and wave c of a possible wave (ii) will extend to the downside, then to support the bullish bias the low of 1.02444 can NOT be broken. Otherwise wave (iv) will become more complex and time consuming correction and more lower prices should be anticipated.
Golden downward trend line on H4 chart has been broken and as long as price stays above the TL the bias is to the upside.
Support/Resistance:
1.0408 - WR2
1.0338 - WR1
1.0333 - Wave (iv) High
1.0315 - 1.0330 - SUPPLY ZONE
1.0296 - Weekly Pivot
1.0263 - Intraday Support
1.0244 - Swing Low
1.0225 - WS1
Trading recommendations:
Going long at Intraday Support level at 1.0263 with SL below the Swing Low and TP at 1.0320 level provides 3:1 R/R intraday trade.
