General overview for 27/08/2014 09:00 CET
All of the projected target levels for wave c of the corrective cycle have been violated and the market still did not rebound from the sell-off. This means the corrective cycle might get more complex and time-consuming as the none of the simple corrections in shape of running or irregular flats did not work. The only last chance for a corrective cycle to rebound from the target level is at 161% of Fibo relationship between the internal corrective waves at the level of 1.0901. Any breakout lower is bearish and the market will try to test the demand zone between the levels of 1.0858 - 1.0873.
Support/Resistance:
1.0858 - 1.0873 - Demand Zone
1.0901 - Wave C Green Target
1.0911 - WS1
1.0926 - Intraday Resistance
1.0974 - Weekly Pivot
Trading recommendations:
All long positions from yesterday should be closed and traders should open the new buy orders from the level of 1.0901 with a very tight SL in case of a breakout.
The material has been provided by InstaForex Company - www.instaforex.com