General overview for 25/07/2014 13:50 CET

This pair has not made much movement so far. However, there are some indications, that the corrective cycle in form of a green abc irregular flat wave 2 has been completed and the market might be ready for another leg down. Moreover, it looks like the first wave to the downside has already been made and this would be a very good opportunity for day traders to enter the market on the short side with very limited risk. Break below the first and second intraday support level in an impulsive fashion is another clue that the count is valid.

Support/Resistance:

136.18 - WS1

136.35 - Wave b green Low

137.92 - Intraday Support

136.75 - Intraday Support

137.30 - Weekly Pivot

137.33 - Intraday Resistance |Key Level|

137.65 - Technical Resistance

Trading recommendations:

Please, wait for the marker to decide which way it wants to go. Any breakout higher above the key level means swing and day traders should keep short positions open as the corrective wave to the upside has started. Nevertheless, the mid-term bias is still bearish.