General overview for 01/07/2014 08:20 CET

The impulsive wave progression looks completed and now the market is in corrective cycle wave 4 red. The most possible corrective pattern for this cycle in this place is a triangle formation and this one has been indicated on the chart. When the corrective cycle is done, last wave to the downside is expected before any meaningful upward wave progression would start. The first target level for wave 5 red is at the level of 1.0614.

Support/Resistance:

1.0614 - WS1

1.0661 - Intraday Support

1.0685 - Weekly Pivot

1.0692 - Intraday Resistance

1.0711 - WR1

1.0750 - Previous wave (iv) Zone

1.0782 - WR2

1.0809 - WR3

Trading recommendations:

As the impulsive wave progression in red count has not been finished yet, the swing traders should still keep the open sell positions running and the good level to add to the existing positions is the area between the levels of 1.0696 - 1.0716, with SL above the level of 1.0750 and TP below the level of 1.0644.