General overview for 16/09/2013 11:00 CET

On Monday, in Wellington, open price has made a 15 pips gap down (red rectangle) and broke below Friday's low.

Friday's low of 1.0304 will act as technical resistance now and a breakout above this level is needed to try to fill the gap.

From EWP point of view, there might be one more wave to the downside missing to complete wave c purple of wave c green and then corrective rally up is anticipated to complete the cycle of wave (iv) green. The first target area  is 261%Fibo Extension of wave a green at 1.0366. This level is in coinfluence with intraday supplay zone of the grey rectangle and the golden descending trendline as well, so it might provide good resistance.

Please notice, that alternate count indicates a possibility of more extended impulsive decline, but any break above the 1.0304 level will invalidate this scenario.

Support/Resistance:

1.0255 - WS1

1.0274 - Technical Support

1.0304 - Intraday Resistance

1.0319 - 1.0335 - GAP

1.0335 - Weekly Pivot

1.0359 - WR1

1.0359 - 1.0366 - Intraday Supply | Golden Trend Line Resistance|

Trading recommendations:

The key level for today is 1.0304 and any price above this level means that the price might by trying to fill the GAP and hit the Intraday Supply level. On the other hand, a failure to close above the 1.0304 is bearish and one more wave to the downside could be seen  with targets at 1.0274 or 1.0255.