General overview for 06/01/2014 09:40 CET

The corrective cycle in wave (ii) black has not been finished yet and it looks like more complex and time consuming cycle is ahead.

The most important level now is labeled as the Key Level and this is where I expect the correction to be finished. Any breakout above this level is bullish and test of the recent high would be in view.

On the other hand, price might get rejected at the Weekly Pivot level at 1.0644 and head lower, breaking the golden trend line and aiming at the level of 1.0570 where DEMAND ZONE is. Another breakout below this zone is bearish and it would be considered as the first confirmation that the top is in place.

Support/Resistance:

1.0783 - WR2

1.0735 - Swing High

1.0701 - WR1

1.0675 - Key Level

1.0644 - Weekly Pivot

1.06400 - Intraday Resistance

1.0600 - Intraday Support

1.0570 - 1.0576 - DEMAND ZONE

1.0562 - WS1

1.0506 - WS2

Trading recommendations:

The Key Zone level is the most important for now and a short positions should be in play from this level. SL should be above the level of 1.0702 and TP should be below the level of 1.0600.