General overview for 04/02/2014 08:30 CET

For last two weeks we have been tracking this downside sloping triple zigzag correction in wave 4 purple. Currently, the market is very close to invalidate the main purple count as the invalidation line is at the level of 135.44. The alternate count has been labeled in the H4 time frame chart and it indicates quite strong impulsive downside wave progression. On hourly time frame, the key level to the upside in case of main count is still valid, is at the level of 137.03. Only a breakout above this level and then violation of golden trend line without taking out the invalidation line would have still suggest that another top is possible. Otherwise, more downside is unavoidable for this pair.

Support/Resistance:

135.86 - WS1

136.21 - Intraday Support

136.33 - 161%FE Fibo

136.03 - 136.10 - Key Resistance Level

136.49 - Technical Resistance

Trading recommendations:

Only breakout above the level of 137.03 would be a bullish trade opportunity and buy positions might be opened with SL below the level of 136.19 and TP at the level of 138.52. Otherwise, the intraday trend remains bearish.