General overview for 07/08/2014 08:05 CET

The count has been adjusted slightly but the general outlook is still unchanged: red wave 4 of a corrective cycle must be completed before new highs will be made. So far, the market has done the first leg of the correction, labeled as a purple wave. There is at least two more legs to the downside coming but the possibility of a triangle shaped corrective cycle can not be ruled out yet. The key level to the upside is the intraday resistance at the level of 1.0943. Breakout above means the recent swing high will be put to the test.

Support/Resistance:

1.0991 - WR1

1.0985 - Swing High

1.0943 - Intraday Resistance

1.0903 - Intraday Support

1.0892 - Weekly Pivot

Trading recommendations:

Swing traders should still keep their long positions open and buy the dips into the level of 1.0875.

Day traders might consider opening intraday sell orders at the level of 1.0943, with SL above the level of 1.0986 and TP at the level of 1.0875.