General Overview for 09/05/2014 11:100 CET

The market is behaving exactly as anticipated with impulsive wave progression to the downside. Currently the key level is the old supply breakthrough zone. Now, it will act as a supply zone. The downside move seems unfinished yet. The next support level for this pair is at the level of 140.26. If this level is broken, then the swing lows of 139.90 will be tested and possibly broken as well.

Support/Resistance:

140.26 - WS2

140.51 - Intraday Support

140.73 - Intraday Resistance

141.03 - WS1

140.97 - 141.06 - Supply Breakthrough Zone

141.74 - Weekly Pivot

142.46 - Swing High

142.50 - WR1

Trading recommendations:

For swing traders: all sell orders that have been advised to open from higher levels should be still kept open as more downside moves are expected to come if the forecast is correct. The next middle week target is at the level of 140.26. SL should be placed above the level of 141.06.

For daytraders: sell stop orders should be opened from the level of 140.49 with SL above the level of 140.80 and TP at the level of 140.26 with a possible extension to the level of 139.90.