General overview for 05/10/2015 10:20 CET

There are two possible scenarios for this pair on the H4 chart. The first scenario indicates a possible continuation of a range-bounded trading inside the golden channel. The Elliott wave labeling for this count is ABCDE back as a part of the wave B navy. The alternative count indicates a possible completion of the wave B blue at the level of 132.21 and the current up move might be a part of the more impulsive wave C blue to the upside. To confirm this scenario, the market should break out above the golden trend line and head towards the 161% Fibo at the level of 140.94. So far on lower time frames like H1 there is not much impulsive wave development to the upside as the current moves look more like three-wave corrective cycles. This kind of wave development suggests that the more complex and time-consuming wave B blue is still in progress.

Support/Resistance:

133.15 - Technical Support

133.79 - WS1

134.41 - Weekly Pivot

134.88 - Intraday Support

135.36 - Intraday Resistance

135.43 - WR1

136.12 - WR2

Trading recommendations:

Daytraders should consider opening buy orders, if the level of 135.36 is violated, and place SL below the level of 134.88 and TP at the level of 136.12.