General overview for 22/08/2013 10:00 CET
As it was indicated yesterday, another wave to the upside has been made ( wave 5 purple). Judging by the momentum analysis, there is still a possibility, that this wave does't finish the whole five impulsive purple waves sequence to the upside but it could be long wave 3 purple with fifth wave expansion ( wave alt:3). This is why I still take into account the possibility of even larger and stonger wave 3 green and I will keep the alt. purple count on chart as long as it is not invalidated ( invaliadtion level is 1.0368).
Currently price should be in corrective cycle of wave 4 green or wave alt.4 purple.
Another alternate count is green alt.A, alt.B, alt.C count thet still indicates a possibility of some sort of corrective structure and current wave development suggest Irregular Flat wave alt:2 and not a triangle ( as suggested yesterady).
Support/Resistance:
1.0500 - Swing High
1.0466 - WR3 | Intraday Support |
1.0436 - 1.0445 - Intraday Demand
1.0417 - WR2 | Previous Wave 4 Area |38%Fibo
1.0359 - 50%Fibo
1.0377 - 1.0370 - WR1 | 61%Fibo |
1.0368 - Technical Support | Purple Impulsive Count Invaliadation Line |
Trading recommendations:
Buying the lows of the corrective cycle wave 4 in anticipation of wave 5 to the upside is the way to trade.
First level would be at 1.0466 with tight SL.
If this one is broken, then next one is 1.0436 - 1.0445 zone with Sl just below 1.0444.
Last opportunity is at 1.0417 with tight SL.
Potential TP level is at 1.0531 - 1.0543 zone.
