General overview for 24/12/2013 10:20 CET

The corrective wave development labeled as green abc Irregular Flat wave 2 cycle has been finished and current outlook for this pair is bullish.

To follow this assumption, the price must break out from the Intraday Range zone between the 1.0598 level and the 1.0632 level, and the preffered breakout is to the upside, in the direction on the Weekly Pivot level at the 1.0645 and then the 1.0660 Technical Resistance level. The breakout even higher than this level and price comeback to the blue channel zone is first clue that itermediate low is in place (wave 2 black) and test of the recent high is in view.

On the other hand, any breakout lower below the 1.0598 Intraday Support level, exposes to test the Demand Zone. If this zone is broken and the level of 1.0572 is violated, then maim count is invalidated and alternate count is in play.

Support/Resistance:

1.0736 - Swing High

1.0719 - WR1

1.0660 - Technical Resistance

1.0645 - Weekly Pivot

1.0632 - Intraday Resistance

1.0598 - Intraday Support

1.0572 - 1.0575 - DEMAND ZONE

1.0559 - Technical Support

1.0555 - WS1

Trading recommendations:

Typical range breakout strategy should be played here with traders placing Buy Stop orders at the 1.0633 level with SL at the 1.0612 level and TP1 at the 1.0645 and TP2 at the 1.0660 level.

In case of downside breakout, traders should place Sell Stop orders at the 1.0598 level with SL at the 1.0614 level and TP1 at the 1.0572 level and TP2 at the 1.0559 level.