General overview for 30/05/2014 07:40 CET

The technical support level was violated yesterday after a downside breakout from the red channel, making another marginal low in the market. Currently, the price is still above very important technical support at the level of 1.0813, and a breakout lower not necessary should be perceived as bearish because the corrective cycle to the upside is still possible in more complex wave (c) blue as a part of irregular flat correction in wave 2. The downside count in wave (b) blue however has been changed to a WXYXXZ labeling that is representing a descending triple three complex corrective cycle that is targeting the level of 1.0813 (grey rectangle). The bounce is expected from this level and if the main count is correct, the upward progression should start to complete wave (c). Otherwise the count will be invalidated and more lower prices should be expected.

Support/Resistance:

1.0813 - Techncial Support

1.0819 - WS1

1.0824 - Intraday Support

1.0848 - Intraday Resistance

Trading recommendations:

Swing traders and daytraders should consider opening buy limit orders from the grey rectangle zone with SL below the level of 1.0799 and TP at the level of 1.0848 (daytraders) and 1.0941 (swing traders).