General overview for 27/01/2014 07:30 CET

After making the top last week, the market is slowly developing a downside move with the target at the level of 1.1017. Break below the technical support level will expose the next weekly support at the level of 1.0942. From technical point of view there is one more shoulder missing to complete the price formation and then the neckline break might be expected. But currently, the market is at weekly pivot support at the level of 1.1056 and for the downside breakout to happen, the area between 1.1087 -1.1106 mustn't be violated. Otherwise, the recent swing high will be tested and might even be broken.

Support/Resistance:

1.1185 = WR1

1.1172 - Swing High

1.1089 - 1.1106 - Demand Breakthrough Zone

1.1056 - Weekly Pivot

1.1049 - Intraday Support

1.1017 - Techncial Support

1.0942 - WS1

1.0812 - WS2

Trading recommendations:

If intraday support at the level of 1.1049 is violated, then short positions should be opened with SL above the level of 1.1056 and TP at the level of 1.1017.