Price has declined in five waves that constituted the wave iii and now a corrective cycle in wave iv is due.
The first sign of this cycle is the golden channel breakout and it looks like the price is going to test the Intraday Resistance and Weekly Pivot level at 131.04 again. Only a breakout of this level would threaten to invalidate this bearish impulsive count as the invalidation line is at 131.40. Otherwise, after the correction is complete, continuation of downside movement is expected.
131.40 – Bearish impulsive count invalidation line
131.85 – 132.02 – Intraday resistance
132.77 – WR1
Trading recommendations:
Bias is to the downside. If Intraday resistance ZONE is not broken, then the short side of the market should be in play with SL just above the level of 131.05 and TP at 129.59.
The material has been provided by InstaForex Company – www.instaforex.com
General overview for 06/08/2013 08:30 CET:
Price has declined in five waves that constituted the wave iii and now a corrective cycle in wave iv is due.
The first sign of this cycle is the golden channel breakout and it looks like the price is going to test the Intraday Resistance and Weekly Pivot level at 131.04 again. Only a breakout of this level would threaten to invalidate this bearish impulsive count as the invalidation line is at 131.40. Otherwise, after the correction is complete, continuation of downside movement is expected.
Support/Resistance:
129.32 – Swing low
129.59 – Technical support
129.89 – 78% Fibo
130.19 – WS1
130.75 – 131.04 – Intraday resistance ZONE | Weekly Pivot |
131.40 – Bearish impulsive count invalidation line
131.85 – 132.02 – Intraday resistance
132.77 – WR1
Trading recommendations:
Bias is to the downside. If Intraday resistance ZONE is not broken, then the short side of the market should be in play with SL just above the level of 131.05 and TP at 129.59.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: