General overview for 21/08/2013 08:00 CET
Due to wave i -iv overlapse old count has been invalidated and new count is here with two possible scenarios:
SCENARIO 1: MAIN COUNT - This is bullish 1-2,1-2,(i)-(ii), count that indicates the low for the wave X has been found and now market is going straight up to finish wave Y of a larger degree cycle. The Key Level that can not be broken in order to support this scenario is 1.0368.
SCENARIO 2: ALTERNATE COUNT - This is bearish alt. count that assumes wave X has not been finished yet and only wave alt.W brown has been done. The correct upward structure is still a part of wave alt:X brown in a possible shape of a Ascending Triangle. First three waves of this triangle are supposed to be done: waves alt.A, alt.B, alt.C. Now more downside pressure should emerge from the levels of 1.0434 - 1.0444 (grey rectangle in the middle of the H4 chart). The Key Level that must be broken to confirm this scenario is 1.0368 as the former wave 1 violet top.
Please notice that on Daily chart price is above 50,100 and 200 DMA and it is still moving inside of wilde black channel that had begun at the beginning of the September 2012.
Support/Resistance:
1.0445 - Wave X High | Swing High |
1.0440 - 161%Fibo Extension | Wave 3 violet target |
1.0417 - WR2
1.0399 - Intraday Support
1.0377 - WR1
1.0368 - Technical Support | Wave 1 High | KEY LEVEL |
1.0328 - Weekly Pivot
Trading recommendations:
After five impulsive waves to the upside some sort of correction is expected now, but please be aware that last wave might get extended before the correction will happen.
Selling the 1.0445 level with very tight SL in anticipation of a corrective wave to the downside is the way to go. Potential targets for a correction are 1.0417 and 1.0399 .
