General Overview for 03/01/2014 10:45: CET
The corrective cycle in wave (ii) has took a form of Irregular Flat and it looks like it has been completed at the level of 1.0676.
The golden trend line is now quite important as any breakout above it might suggest more complex corrective cycle in wave (ii). Nevertheless, the wave development is still looking more bearish than bullish and lower prices are expected here. The most important level to the downside is the low for wave b green and then the DEMAND ZONE between the levels of 1.0570 and 1.0576.
On the other hand, only a sustained breakout above the SUPPLY ZONE between 1.0725 - 1.0735 would invalidate the bearish impulsive count.
Support/Resistance:
1.0735 - Swing High
1.0676 - Weekly Pivot
1.0663 - Intraday Resistance
1.0635 - WS1
1.0630 - Intraday Support
1.0586 - Wave b green low
1.0570 - 1.0576 - DEMAND ZONE
Trading Recommendations:
As long as golden trendline holds, the short side of the market should be in play for intraday traders. The entry level should be at 1.0663 with SL at the level of 1.0678 and TP at the level of 1.0576.
