General overview for 19/05/2014 10:50 CET

The market is trading at the golden trendline support level just below the 61%Fibo retracement. If the count is correct and the market is developing a triangle wave (iv) green then a bounce should happen from the current price levels and the first target for the upward wave is at the level of 1.0890. However, if the intraday support at the level of 1.0851 is broken, then next support is at the level of 1.0834 and that situation might result in creating a bullish divergence on an hourly chart and a chance of an upside bounce is even greater.

Support/Resistance:

1.0813 - Wave (iii) Green Low

1.0834 - Technical Support

1.0851 - Intraday Support

1.0874 - Weekly Pivot

1.0890 - Intraday Resistance

1.0897 - WR1

Trading recommendations:

Daytraders should consider opening buy limit positions from the level of grey rectangle support with SL below the level of 1.0833 and TP at the level of 1.0890. Please notice that trading inside of a possible triangle formation is full of false breakouts and whipsaws.