General overview for 21/08/2013 on 10:30 CET
The price is in corrective cycle wave ii that has reached more than 90% of the wave i and currently is at the 78%Fibo retracement of the larger swing. This level is the Key Level for the immediate bearish impulsive wave development.
Due to so deep retrace the only possible corrective pattern is ABC Regular Flat correction and this type of pattern has been suggested on H1 chart: the wave a green is done, and now some corrective wave b is extpected. This wave b should hit the end of the wave i and reverse to make last wave c to the upside. This king of wave development will eventually finish corrective structure in wave ii and impulsive wave iii to the downside should develop.
Please notice, that if the level of 131.03 is broken, then the immediate bearish impulsive wave development is invalidated but to invalidate the larger cycle implusive bearish wave progression, the price must break above 131.94 level ( as showed on H4 chart). The non linear regression model on H4 is red and slope is downward, showing more possible price action development.
Support/Resistance:
131.94 - Invalidation Line of the larger bearish cycle
131.56 - 131.50 - 88.6%Fibo | WR1 |
131.09 - 78%Fibo
131.03 - Invalidation line of the immediate bearish cycle
129.76 - Weekly Pivot
129.26 - 129.40 - Intraday DEMAND ZONE
128.91 - Technical Support
128.81 - WS1
Trading recommendations:
Any price in the zone of 130.85 - 131.03 should be sold with tight SL and potential TP for intraday scalp at 129.95.
If 131.03 is broken, long positions should be in play with tight SL and potential TP for intraday scalp at 131.56.
