General overview for 27/08/2013 10:00 CET
The range between the technical support at 1.0532 and the intraday demand zone at 1.0498 is being traded right now and sooner or later one of these levels will give up for further wave development.
The possibility of slightly higher wave (b) that would top at 1.0551 - 1.0558 area still exist, but any breakout of the swing high of 1.0567 is bullish.
The alternate count of wave (b) is an abcde triangle and a break out below the 1.0498 area will complete wave (c) of wave 4 green correction and then we will see upside wave progression. That will mean that Weekly Pivot and the technical support at 1.0462 are hit and should act as support for the price.
In case of upside breakout, the next target for this pair is at 1.0606 - the last swing high.
Support/Resistance:
1.0567 - Swing High
1.0551 - 1.0558 - Intraday Supply Zone
1.0532 - Technical Resistance
1.0498 - Intraday Support | Intraday Demand Zone |
1.0475 - Weekly Pivot
1.0462 - Technical Support
Trading recommendations:
As the price is in the middle of the range now, only intraday short positions with very tight SL from the current levels should be in play.
Otherwise, traders must wait for the price extreme. An upside level to short is 1.0551 - 1.0558 area and the 1.0567 swing high in anticipation of wave (c) to the downside that will break the 1.0498 support level. Tight SL should be used.