General overview for 08/08/2014 09:50 CET
The purple wave b of the overall corrective cycle looks to be completed. Now, the market should be ready to trade lower in order to complete purple wave c of the red wave 4 correction. To support this view, the intraday support at the level of 1.0903 needs to be broken in impulsive fashion but the possibility of a triangle shaped corrective cycle can not be ruled out yet. The key level to the upside is the intraday resistance at the level of 1.0943. Breakout above means the recent swing high will be put to the test. The bias is still bullish in the mid-term, but first the corrective cycle must be completed before new highs will be made eventually.
Support/Resistance:
1.0991 - WR1
1.0985 - Swing High
1.0943 - Intraday Resistance
1.0903 - Intraday Support
1.0892 - Weekly Pivot
Trading recommendations:
Swing traders should still keep their long positions open and buy the dips into the level of 1.0875.
Day traders should still hold the sell orders opened yesterday with the same TP at the level of 1.0875.
