Wave progression is developing exactly according to the main count: an impulsive wave to the upside has just broken out the SUPPLY area at 1.0400 and it looks like the next meaningfull resistance is at 1.0439 – 1.0445 zone. There is one more resistance along the way: 50% Fibo @ 1.0426 so price might be capped there for some time before upward move will eventually resume.
The level of 1.0400 has become a technical support now and in case of a breakout to the downside, next intraday support is at 1.0386.
Bias is bullish, but traders should’t forget about one more possibility of more complex wave (ii) here that I have labeled as alternate WXY count of wave (ii).
Support/Resistance:
1.0439 – 1.0445 – SUPPLY ZONE
1.0426 – 50%Fibo
1.0400 – Technical Support
1.0386 – Intraday Support
1.0354 – Weekly Pivot
1.0334 – Technical support
Trading recommendations:
As long as 1.0386 – 1.0400 support area holds, the long side of the market is preffered with SL below 1.0386 and TP1 at 1.0426 and TP2 at 1.0445.
The material has been provided by InstaForex Company – www.instaforex.com
General overview for 07/08/2013 09:30 CET
Wave progression is developing exactly according to the main count: an impulsive wave to the upside has just broken out the SUPPLY area at 1.0400 and it looks like the next meaningfull resistance is at 1.0439 – 1.0445 zone. There is one more resistance along the way: 50% Fibo @ 1.0426 so price might be capped there for some time before upward move will eventually resume.
The level of 1.0400 has become a technical support now and in case of a breakout to the downside, next intraday support is at 1.0386.
Bias is bullish, but traders should’t forget about one more possibility of more complex wave (ii) here that I have labeled as alternate WXY count of wave (ii).
Support/Resistance:
1.0439 – 1.0445 – SUPPLY ZONE
1.0426 – 50%Fibo
1.0400 – Technical Support
1.0386 – Intraday Support
1.0354 – Weekly Pivot
1.0334 – Technical support
Trading recommendations:
As long as 1.0386 – 1.0400 support area holds, the long side of the market is preffered with SL below 1.0386 and TP1 at 1.0426 and TP2 at 1.0445.
The material has been provided by InstaForex Company – www.instaforex.com
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