General overview for 28/10/2016:
The rising wedge pattern that is in progress clearly indicates the possibility of another sell-off as the growing divergence between the price and the momentum indicator is waiting for confirmation. The sudden decline towards the demand zone has been labeled as the wave -a- (black) of the overall corrective structure. This recent high might be labeled as wave -b- (black). There is still wave c (black) missing from the overall correction. The projected target for wave c (black) has been raised to the level of 1.3250, just below the weekly pivot at the level of 1.3255.
Support/Resistance:
1.3400 - Local High
1.3397 - Wave a Top
1.3290 - 1.3311 - Demand Zone
1.3255 - Weekly Pivot
1.3157 - WS1
Trading recommendations:
Day traders might again consider opening the sell orders with SL just above the recent swing high and TP at the level of 1.3255.
