General overview for 24/01/2014 07:50 CET

The important intraday support was violated yesterday and since then the price hasn't made any new high yet. This type of price action might suggest more complex corrective cycle developing or the beginning of a new impulsive wave progression to the downside.

To confirm any of this two possibilities, traders must wait for a new high or a new low to gain more clues about further price action.

Please notice that momentum is more and more weaker and bearish divergence is being seen on daily, H4 and H1 time frames.

Support/Resistance:

1.1172 - Swing High

1.1128 - Intraday Resistance

1.1089 - Intraday Support |WR2|

1.1037 - WR1

1.1017 - Technical Support

Trading recommendations:

The key level to watch is the level of 1.1128. If this level is broken to the upside, then long positions should be opened with SL below the level of 1.1088 and TP at the level of 1.1172. If this level is not broken, then short positions should be opened with SL just above the level of 1.1129 and TP at the level of 1.1089 and 1.1017.