General Overview for 09/05/2014 11:40 CET

The yesterday's target for wave v black has been hit but the market has been still falling down. So, the new red cycle has been added to improve greatly the wave (iii) green. Currently, the market is in the corrective cycle in wave 4 red. There is still one more wave to the downside needed to complete the downside bearish impulsive wave development. Please, notice that any breakout higher above the intraday resistance at the level of 1.0835 will result in a more complex and time consuming corrective cycle. Nevertheless, the outlook is still bearish. The next target for this market is at the level of 1.0757.

Support/Resistance:

1.0921 - WS1

1.0878 - WS2

1.0835 - Intraday Resistance

1.0813 - Intraday Support

1.0819 - WS3

1.0757 - Target for wave (iii) or (v)

Trading recommenadtions:

Day traders should consider an intraday contrarian buy trade opportunity if the level of 1.0835 is violated. The entry would be at the level of 1.0839 with SL below the level of 1.0812 and TP at the level of 1.0878.

Swing traders should still keep their short positions opened as the main target for this market has not been hit yet.