General overview for 04/09/2013 09:30 CET
The price is still in a range but there are some first clues of a possible impulsive wave structure in progress.
Nevertheless, I would like to remind two possible scenarios here, both are in separate charts:
SCENARIO 1: MAIN COUNT - Wave (e) has been finished upon support test of the level of 1.0509 and now the price may be in progress of impulsive wave development. Intraday Supply area breakout and new high are the first confirmation of this impulsive scenario.
SCENARIO 2: ALTERNATE COUNT - Wave (c) to the downside is missing to finish wave Y of the more complex structure and time consuming wave 4 before any impulsive upside progression will happen. The first target level for wave (c) of Y is at 1.0470.
Intraday Suppley Zone of 1.0551 - 1.0558 is the key level now for both count and a breakout of this level will be first clue of a possible wave progression.
Please, notice that AO oscilator histogram helps this scenario, indicating a next possible bearish divergence.
Support/Resistance:
1.0605 - WR2
1.0570 - WR1
1.0567 - Swing High
1.0551 - 1.0558 - SUPPLY ZONE | KEY LEVEL FOR BEARS |
1.0535 - Key Intraday Support levels of Golden Trendline |
1.0519 - Weekly Pivot
1.0509 - Technical Support
1.0483 - WS1
1.0470 - Technical Support | KEY LEVEL FOR BULLS |
1.0435 - WS2
1.0398 - WS3 | 61%Fibo |
Trading recommendation:
The key level of 1.0551 - 1.0558 should be traded with very tight SL.
For bulls: the breakout strategy of buying after breakouts should be in play.
For bears: the selling supply zone strategy should be in play.
Bias is to the upside.