General overview for 12/05/2014 09:40 CET

A five wave impulsive structure labeled as wave (iii) green looks finished and market will be correcting this move to the upside now. The key level for this corrective cycle is at the previous wave 4 red area what is 38%Fibo retracement level is as well. The corrective structure might have a different shape but any breakout below the last low at the level of 139.90 would be the first clue signaling that the top for wave 4 red is in place and the market is developing the last wave to the downside before any meaningful correction happens. Please notice that an alternate count indicates that more impulsive wave progression is possible in case wave (iii) wouldn't have been finished yet. Then much lower level in this pair could be seen.

Support/Resistance:

142.27 - Wave 2 red high

141.35 - WR1

140.96 - 141.06 - Supply Zone

140.02 - Key Level

140.61 - Weekly Pivot

140.50 - Intraday Resistance

140.16 - Intraday Support

139.90 - Wave (iii) green low

139.25 - Wave 5 red target

Trading recommendations:

Swing traders should still keep short positions open as the current impulsive wave progression to the downside has not been finished yet.

Daytraders might consider opening intraday short positions from the level of 139.88 with SL above the level of 140.51 and TP at the level of 139.25.