General overview for 22/08/2014 10:00 CET

As anticipated yesterday, the five wave impulsive structure looks completed. Now, it is correction time. There are at least two main shapes that this corrective structure might unfold and it all depends where green wave b will be finished. If green wave b will be completed below the key level at 1.0946, then the shape of the corrective cycle will be a zig-zag. If the wave will break out higher into the last swing high level, then the chances are high, that the corrective cycle will be in shape of a regular/irregular flat cycle. The main support level is at the weekly pivot at the level of 1.0901.

Support/Resistance:

1.0901 - Weekly Pivot

1.0926 - Intraday Support

1.0946 - Intraday Resistance

1.0944 - WR1

1.0984 - Swing High

Trading recommendations:

Buy orders should be closed now or trailing stop orders should be used to protect the profits on all open buy orders. It is highly recommended to wait until the corrective cycle is completed before opening another position.