The price is still in a range between technical support and the round number level of 1.0500 and the recent high at 1.0567.
This kind of overlaping price action indicates that the possible upside leg is not finished and the price is currecntly in corrective consolidation cycle of wave 4 that will eventually turn into a new high.
The structure currently developing is wave 4 of the triangle and there is one small descending wave (e) missing to complete the pattern before final wave 5 will happen.
From technical point of view a bullish flag pattern is possible and a break above 1.0567 will confirm this scenario. A test of bullish flag trendline is very possible before a reversal happens.
Target for the wave 5 is min. 1.0608.
Support/Resistance:
1.0567 – Swing High
1.0551 – 1.0558 – Intraday Supply Zone
1.0537 – Intraday Resistance
1.0508 – Technical Support
1.0475 – Weekly Pivot
1.0469 – Technical Support
Trading recommendations:
Buying the wave (e) possible levels of retracements with SL below 1.0469 and TP at 1.0608 is the way to trade this pair now.
The material has been provided by InstaForex Company – www.instaforex.com
General overview for 30/08/2013 08:00 CET
The price is still in a range between technical support and the round number level of 1.0500 and the recent high at 1.0567.
This kind of overlaping price action indicates that the possible upside leg is not finished and the price is currecntly in corrective consolidation cycle of wave 4 that will eventually turn into a new high.
The structure currently developing is wave 4 of the triangle and there is one small descending wave (e) missing to complete the pattern before final wave 5 will happen.
From technical point of view a bullish flag pattern is possible and a break above 1.0567 will confirm this scenario. A test of bullish flag trendline is very possible before a reversal happens.
Target for the wave 5 is min. 1.0608.
Support/Resistance:
1.0567 – Swing High
1.0551 – 1.0558 – Intraday Supply Zone
1.0537 – Intraday Resistance
1.0508 – Technical Support
1.0475 – Weekly Pivot
1.0469 – Technical Support
Trading recommendations:
Buying the wave (e) possible levels of retracements with SL below 1.0469 and TP at 1.0608 is the way to trade this pair now.
The material has been provided by InstaForex Company – www.instaforex.com
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