General overview for 18/12/2014 09:50 CET

The level of 1.1670 acts as a strong intraday resistance level and despite the fact it was tested three times, the market still can not break through it. From the Elliott Wave point of view at least two scenarios can be placed at this period of time, both suggesting the corrective wave progression to the downside, but now the crucial question is the degree cycle of the correction. Nevertheless, the most important support is the intraday support at the level of 1.1559 and the dynamic support provided by the golden trend line. In case of any lower breakout, the weekly pivot point at the level of 1.1533 should provide a strong level to bounce from.

Support/Resistance:

1.1727 - WR2

1.1670 - Intraday Resistance

1.1666 - WR1

1.1559 - Intraday Support

1.1531 - Weekly Pivot

Trading recommendations:

Swingtraders should have now closed the buy positions as yesterday's spike down has hit the SL order at the level of 1.1590.

Daytraders might consider to open buy stop orders from the level of 1.1672 with tight SL (15-20 pips) and TP at the level of 1.1727.