General overview for 01/07/2014 08:00 CET

The anticipated wave (c) to the upside is finally unfolding but the definitive invalidation of more complex correction can not be ruled out just yet, which is why there is still the 1 or a,2 or b and 3 or c labeling present on the chart. The bullish confirmation zone has been broken, but so far there is no follow through on hourly chart and the Elliott wave count shows a possibility of a small cycle wave iv correction before the first target for wave v black at the level of 139.02 will be reached. The second target is a little bit higher at the level of 139.32. Please notice that this would be only a wave 3 red completion and if the wave progression is impulsive, then even higher levels will be hit. The second thing worth mentioning is that the upside correction labeled here as (a)(b)(c) blue is a part of a corrective wave c black to the upside and when completed, the downside trend will resume.

Support/Resistance:

139.89 - WR3

139.40 - WR2

139.32 - Wave v black Target

139.02 - Wave v black Target

139.89 - WR1

138.91 - Technical Resistance

138.48 - Intraday Resistance

138.43 - Weekly Pivot

137.89 - WS1

137.69 - Wave b Low

137.40 - WS2

Trading recommendations:

Daytraders should open buy stop positions from the level of 139.01 with SL below the level of 138.48 and TP at the level of 139.02 and 139.32.