General overview for 23/12/2013 10:30 CET
After last week analysis, a new high has been made as anticipated and the market retraced impulsivly down. However, there are still two possible scenarios here and the difference between them is in top for wave v black placement.
- SCENARIO 1 - Main Count - Current wave progression is bullish as there is unfinished impulsive development to the upside. Wave c green of wave 2 black has been almost completed, then rebound is expected. Break below 1.0572 invalidates the count and it will be a first clue that top is in.
- SCENARIO 2- Alternate Count - The top for wave V black and C green had been done already, and current wave development should be to the downside. First impulsive wave is almost done, as the red sub-wave 5 is missing. Then a corrective cycle wave two is expected before market will countinue down in wave three. Break of 1.0736 invalidate this count.
Support/Resistance:
1.0736 - Swing High
1.0719 - WR1
1.0660 - Intraday Resistance
1.0645 - Weekly Pivot
1.0628 - Intraday Support
1.0601 - 1.0609 - DEMAND ZONE
Trading recommendations:
For intraday scalpers the breakout below 1.0628 is a good short entry opportunity with SL just above it and a potential TP at 1.0601.
