General overview for 19/12/2014 09:30 CET

The count has been changed a little and now it is indicating a more complex corrective cycle WXY brown in wave 4 purple, where wave Y brown has not been completed yet. The degree of the waves has been raised one step higher and this is why it is taking so long for the market to complete the corrective cycle this time of the year. The level of 1.1670 is acting as a strong intraday resistance level. Despite the fact it has been tested three times, the market still can not break through it. Nevertheless, the most important support is the intraday support at the level of 1.1559 and the dynamic support provided by the golden trend line. In case of any downside breakout, the weekly pivot point at the level of 1.1533 should provide a strong level to bounce from. Please notice that the bias is still bullish and at least one more impulsive wave to the upside should be made sooner or later.

Support/Resistance:

1.1727 - WR2

1.1670 - Intraday Resistance

1.1666 - WR1

1.1559 - Intraday Support

1.1531 - Weekly Pivot

Trading recommendations:

Trading inside of a complex corrective cycle is rather hard thing to do and traders should refrain from trading this pair until a clear breakout is made. In case of upward breakout , daytraders might consider opening buy stop orders from the level of 1.1672 with tight SL (15-20 pips) and TP at the level of 1.1727.