General overview for 26/05/2014 11:10 CET

The corrective cycle in wave (b) blue has almost been finished and now the upward wave progression is anticipated to complete the overall corrective structure in wave 2 black. Please notice that any breakout below the level of 1.0851 will result in green impulsive count invalidation. Nevertheless, the first clue for bulls is the breakout of the red channel with the critical level of a very strong resistance just above the weekly pivot at the level of 1.0883. Moreover, the building bullish divergence on momentum oscillator supports this view.

Support/Resistance:

1.0972 - WR2

1.0940 - Wave (a) Blue High

1.0910 - WR1

1.0883 - Technical Resistance

1.0879 - Weekly Pivot

1.0872 - Intraday Resistance

1.0860 - Intraday Support

1.0851 - Technical Support

Trading recommendations:

Daytraders should consider opening a buy stop positions if the level of 1.0883 is clearly broken, with SL below the level of 1.0872 and TP at the level of 1.0910 with a possible extension upward to the level of 1.0940.