As I’d recommended yesterday, buying was the way to go in anticipation of wave 5 to unfold to the upside.
Currently, it looks like bulls buying power is diminishing as we can see by looking on Awesome Oscillator: the Bearish Divergence between waves 3-5 green occurs now.
There are two possible scenarios how current fifth waves, regardless of cycle degree, might finish:
SCENARIO 1: Ending Diagonal Wave 5 green possibility – After hitting 261%Fibo Ext at 1.0543 the bullish cycle might be completed and price should start some sort of corrective cycle now. Last wave of alternate count, labeled here as alt.C green, is still VALID and the whole structure might look as rather big ABC green Irregular Flat Wave alt:X brown.
SCENARIO 2: Expanded Wave (v) green of wave 3 purple possibility – After this expanded wave the rule if that wave 3 wave expanded then wave 5 should be way shorter and retrace to the previous wave four area of the expansion. The pale orange rectangles on chart show that wave 1 purple is almost the same lenght as wave 5 purple and this is very common after the extension.
The Key Level for both counts is 1.0466 as the former wave four area.
Break of this level will support Scenario 1. Hit and reverse from this level will support Scenario 2.
Support/Resistance:
1.0555 – Current Intraday High
1.0543 – 216%Fibo Extension
1.0528 – Intraday Support
1.0502 – Low of Intraday Demand Zone
1.0466 – Key Level | Technical Support | Previous wave four area |
Trading recommendations:
According to this count corrective cycle is anticipated now, so the shorts should be in play.
First good level to short is a breakout of the navy channel line and technical support level at 1.0528 with SL above 1.0555 and potential TP1 at 1.0502 and TP2 at 1.0466.
NO CHANNEL BREAK OUT= NO SELLING!
The material has been provided by InstaForex Company – www.instaforex.com
General overview for 23/08/2013 09:00 CET
As I’d recommended yesterday, buying was the way to go in anticipation of wave 5 to unfold to the upside.
Currently, it looks like bulls buying power is diminishing as we can see by looking on Awesome Oscillator: the Bearish Divergence between waves 3-5 green occurs now.
There are two possible scenarios how current fifth waves, regardless of cycle degree, might finish:
SCENARIO 1: Ending Diagonal Wave 5 green possibility – After hitting 261%Fibo Ext at 1.0543 the bullish cycle might be completed and price should start some sort of corrective cycle now. Last wave of alternate count, labeled here as alt.C green, is still VALID and the whole structure might look as rather big ABC green Irregular Flat Wave alt:X brown.
SCENARIO 2: Expanded Wave (v) green of wave 3 purple possibility – After this expanded wave the rule if that wave 3 wave expanded then wave 5 should be way shorter and retrace to the previous wave four area of the expansion. The pale orange rectangles on chart show that wave 1 purple is almost the same lenght as wave 5 purple and this is very common after the extension.
The Key Level for both counts is 1.0466 as the former wave four area.
Break of this level will support Scenario 1. Hit and reverse from this level will support Scenario 2.
Support/Resistance:
1.0555 – Current Intraday High
1.0543 – 216%Fibo Extension
1.0528 – Intraday Support
1.0502 – Low of Intraday Demand Zone
1.0466 – Key Level | Technical Support | Previous wave four area |
Trading recommendations:
According to this count corrective cycle is anticipated now, so the shorts should be in play.
First good level to short is a breakout of the navy channel line and technical support level at 1.0528 with SL above 1.0555 and potential TP1 at 1.0502 and TP2 at 1.0466.
NO CHANNEL BREAK OUT= NO SELLING!
The material has been provided by InstaForex Company – www.instaforex.com
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