General overview for 28/07/2014 09:40 CET

The recent alternate count that has been posted last week has been invalidated as the potential wave 4 has overlapped wave 1. This is the reason for the count to be revised and new labeling is now present.

There are two scenarios on the daily time frame chart: main and alternative. The main scenario still suggests, that the downside impulsive wave progression is still possible as long as the level of 1.0960 is not broken. The alternative count suggests a possibility that the ABC corrective structure in blue wave 4 to be completed. Now, a new impulsive wave to the upside has just started. Breakout above the key level would support this view.

On the lower time frame,s the outlook is not clean as two more intraday developments are possible. One suggests impulsive wave progression to the upside, which can be a part of a Zig-Zag correction. The other one suggests some form of an Irregular Flat correction. Nevertheless, the key level for this development is the Demand Breakthrough Zone between the levels of 1.0870 - 1.0892. Any breakout higher above this zone would possibly lead to the last swing high test and an invalidation of the purple bearish count.

Support/Resistance:

1.0960 - Swing High

1.0869 - WR1

1.0870 - 1.0892 - Demand Breakthrough Zone | Key Level |

1.0808 - 1.0827 - Intraday Supply Zone

1.0820 - Intraday Resistance

1.0789 - Weekly Pivot

1.0757 - WS1

1.0652 - Technical Support

1.0679 - WS2

Trading recommendations:

Not very clear outlook at the moment so please refrain from entering a position on this pair.