General overview for 28/01/2014 08:10 CET

The idea of a price formation called head and shoulders yesterday did not work out really and it has been abandoned for now. Instead of that the count has been updated and now it suggest a possible top in this market. The downside reaction is not that much impulsive like it should be, but I can label the first wave down as a leading diagonal. This means that currently price is in a corrective cycle wave (ii) green that has not been finished yet. The suggested shape of this correction looks like a zigzag formation. There are missing waves b purple to the bottom and last wave up, wave c purple. When the correction is completed, the downside should resume. Only a breakout above the level of 1.1171 would invalidate the count.

Support/Resistance:

1.1186 - WR1

1.1171 - Swing High

1.1125 - 1.1134 - Key Level

1.1118 - Intraday Resistance

1.1083 - Intraday Support

1.1062 - Weekly Pivot

1.1029 - Technical Support Zone

Trading recommendations:

Buy positions should be opened from the level of 1.1062 with SL below the level of 1.1029 and TP at the level of 1.1125