General overview for 17/05/2016:
After the lading diagonal wave (i) has been made, the first corrective cycle to the upside looks completed as well. Nevertheless, please remember that the invalidation of this structure is at the level of 124.65, so as long as the internal corrective cycle in a potential wave (ii) green is developing below this level, the chances for a downward trend continuation are high. On the other hand, in case of the violation of the 124.65 level, the market might evolve into a more complex and time-consuming structure in wave (b) blue.
Support/Resistance:
121.47 - Swing Low
121.56 - WS1
122.67 - Intraday Support
123.11 - Weekly Pivot
123.79 - Intraday Resistance
124.08 - WR1
124.55 - Wave (b) High
125.61 - WR2
Trading recommendations:
Day traders should consider selling the rally in this market with SL above the level of 125.65 and TP open for now, because we expect an impulsive wave progression to the downside to continue in the near term.