General overview for 25/07/2014 13:20 CET

Due to the lack of any particular movement on lower timeframes on this forex pair, let's take a look on alternate Elliott Wave labeling on the daily timeframe. This count is quite bearish as the wave progression suggests that the market is in the middle of green wave 3 development. More downside price action is expected as long as the blue corrective channel provides the dynamic resistance. The most important level for bears is the black impulsive count invalidation line at the level of 1.0811. This level can not be broken in order to develop correctly to impulsive wave progression to the downside. The projected target level for blue wave 5 of green wave 3 is the zone between the levels of 1.0514 - 1.0530. Please notice, that the market is below 50, 100 and 200 daily moving averages and this fact supports the bearish case.

Support/Resistance:

1.0514 - 1.0530 - Wave 5 Blue Projected Target Level

1.0619 - Wave 3 Blue Low

1.0819 - Black Bearish Count Invalidation Level

Trading recommendations:

Since the beginning of the last week, I have been advising only short positions to be open both for swing and day traders. This recommendation is valid as long as the level of 1.0819 is broken in an impulsive fashion (five waves progression).The potential projected target for all short positions is at the level of 1.0530.