General overview for 02/01/2014 11:50 CET
Five impulsive waves to the downside has been done and the level of 1.0614 is the low of the wave (i) now.
Currently price is in corrective cycle wave (ii) that might have been finished for now and any breakout below the golden trend line and then below the level of 1.0614 supports the bearish impulsive outlook.
On the other hand there is still a slight possibility that the recent intraday wave progression is just a part of a larger corrective cycle in wave (ii) and the high at the level of 1.0655 is sub-wave green of more complex and time consuming correction. Breakout above the Weekly Pivot at the level of 1.0676 will confirm this view.
Support/Resistance:
1.0777 - WR1
1.0736 - Swing High
1.0655 - Intraday Resistance
1.0675 - Weekly Pivot
1.0614 - 1.0655 - Daily Range Zone
1.0614 - Intraday Support
1.0576 - 1.0570 - DEMAND ZONE
Trading recommendations:
As long as the level of 1.0655 provides the resistance, short side of the market should be in play. Entry levels should be as close as possible to the level of 1.0655 with the SL above the level of 1.0676 and TP below the level of 1.0614 and 1.0576.
