General overview for 08/11/2013 08:10 CET
Yesterday, after the suprise ECB rate cut, the golden trend line has been broken and the price has hit the DEMAND BREAKTHROUGH ZONE for the second time this week.
Currently two counts are still possible:
- The main count, indicating that the price is still developing wave X brown and when it is done wave Y brown to the downside is expected. It sould be a five wave impulsive structure.
- The alternate count, indicating that wave B green has been done already and now the price is trying to make rather very impulsive wave progression to the upside starting with wave (i) and (ii) green (done) and now is in wave (iii) green progression, where wave (1) purple is done and when wave (2) is made the up trend will resume.
For both of the counts the DEMAND BREAKTHROUGH ZONE is the most important area. If holds, the main count is in play; if broken, the alternate one is in play.
Support/Resistance:
1.0395 - 1.0390 - SUPPLY BREAKTHROUGH ZONE
1.0404 - Techncial Support
1.0431 - Intraday Support | Target Zone #2|
1.0436 - Weekly Pivot
1.0444 - Intraday Support | Target Zone #1|
1.0465 - 1.0460 - DEMAND BREAKTHROUGH ZONE | Sell Zone/Buy Zone |
1.0488 - 1.0496 - SUPPLY ZONE | Target Zone #1 |
Trading recommendations:
It is all albout DEMAND BREAKTHROUGH ZONE and it is Sell/Buy zone:
- ALTERNATE COUNT - if the zone is broken go long from 1.0460 - 1.0465 levels with tight SL and TP at 1.0496
- MAIN COUNT - if the zone is not broken, go short with SL just above 1.0465 and potential targets TP1 at 1.0444 and TP2 at 1.0431. If the golden trend line is broken to the downside, the price might get even lower to 1.0404.
