General overview for 05/07/2016:
The market is trading just at the intraday support level of 113.29 and a breakout lower is anticipated. Nevertheless, the wave iv correction might not be completed yet and it still might evolve into a complex and time-consuming pattern, possibly a triangle or any other WXY complex structure. The technical resistance at the level of 115.48 is still the most important level for any bullish rally as it can not be violated. There is still one more wave to the downside missing in order to complete the structure.
Support/Resistance:
109.07 - WS3
109.55 - Wave iii Bottom
110.32 - WS2
111.37 - Intraday Support
112.53 - WS1
113.29 - Intraday Support
113.66 - Weekly Pivot
114.78 - Intraday Resistance
115.48 - Technical Resistance
116.00 - WR1
117.07 - WR2
119.33 - WR3
Trading recommendations:
Day traders should consider opening sell orders at current price levels, with SL above the level of 115.50 and TP open for now. The reason for this trade is, that there is still one more wave to the downside missing.