General overview for 29/05/2014 09:10 CET
The target for long positions indicated on Monday was hit during yesterday's New York session. Currently, the market is moving in red channel trying to develop an impulsive breakout to the upside. The main resistance area for bulls is the grey rectangle supply zone between the levels of 1.0904 - 1.0908. A breakout above this zone will open the road to the recent swing high - top of the wave (a) blue. On the other hand, to invalidate the bullish scenario and confirm the downside wave progression, a breakout below the technical support at the level of 1.0834 is needed.
Support/Resistance:
1.0940 - Wave (a) blue High
1.0910 - WR1
1.0904 - 1.0908 - Intraday Supply Zone
1.0879 - Weekly Pivot
1.0867 - Intraday Resistance
1.0848 - Intraday Support
1.0834 - Technical Support
Trading recommendations:
Daytraders should consider opening a buy stop order if the level of 1.0867 is broken, with SL below the level of 1.0848 and TP at the level of 1.0904 with a possible extension to the level of 1.0940. Only a clear breakout above the level of 1.0881 is a valid signal to add to the long position.
