General overview for 05/02/2014 09:30 CET

The corrective cycle in wave (ii) purple continues on this pair. There is one more wave to the upside missing according to the main count and the likely target for this wave is the grey rectangle area between the levels of 1.1135 - 1.1149. Any breakout above this area means the test of latest swing high is on the way. On the other hand, to continue with impulsive bearish wave progression, the market needs to break below the level of 1.1017.

Support/Resistance:

1.1222 - Swing High

1.1213 - WR1

1.1135 - 1.1149 - Demand Breakthrough Zone

1.1121 - Weekly Pivot

1.1095 - Intraday Resistance

1.1046 - Intraday Support

1.1017 - Technical Support

Trading recommendations:

Breakout above golden trend line is bullish and first aggressive buy stop orders might be opened from this area, but more conservative trader might want to wait for the level of 1.1095 is broken and then open long positions with SL below the level of 1.1046 and TP at the level of 1.1135.