General overview for 13/12/2013 09:05 CET
Looking at today's price action, traders can see a rather very impulsive wave progression to the upside. Yesterday I have ruled out the possibility of last wave 5 blue to the upside ( above 1.0705 high), but looking at the chart again with current price action I had put the alternate count back on ( just in case).
The situation might develop in two scenatios:
- Scenario 1 - Main Count - The imoulsive reaction after wave 1 blue bottom is a part of a ZigZag correction. Wave (a) of ZigZag is almost done and then corrective wave (b) should develop in the way, that would test the red trend line. Then last wave (c). Break above 1.0705 invalidates the count.
- Scenario 2 - Alternate count - The upside progression has not been fnished and current low is wave alt. 4 blue here ( ZigZag OR Irregular Flat). The next wave is impulsive waves are the beggining of first wave (1) purple development of wave 5 blue to the upside. Break below 1.0557 invalidates the coount.
Support/Resistance:
1.0705 - Swing High
1.0689 - WR1
1.0668 - Techncial Resistance
1.0655 - Intraday Resistance
1.0650 - Weekly Pivot
1.0620 - Intraday Support
1.0612 - 1.0618 - Demand
1.0595 - WS1
1.0557 - WS2
Trading recommandations:
Red trendline breakout should be played here for intraday scalpers:
- if red trendline is broken, go long with tight SL and TP at 1.0655 and 1.0668.
- if red trendline is not broken, go short with SL above trendline high and TP at 1.0620 and 1.0612.
