General overview for 05/06/2014 07:00 CET
The weekly resistance level 3 pivot has been passed in this impulsive rally and the whole structure looks overstretched now. This point of view is being supported by diminishing momentum and a possible bearish divergence on hourly chart. This is the good moment to start a more extended downside correction in wave (ii) green with the target on the level of 1.0893. Any breakout lower would mean the upward move has lost the momentum and correction might get more complex and time consuming.
Support/Resistance:
1.0941 - Wave (c) Top
1.0936 - WR3
1.0921 - Intraday Support
1.0911 - WR2
1.0890 - Key Level
1.0874 - WR1
1.0846 - Weekly Pivot
Trading recommendations:
Daytraders might consider going short from the current price levels with SL above the level of 1.0956 and TP at the level of 1.0921 with a possible extension downside to the level of 1.0911 and 1.0890.
