General overview for 13/10/2014 13:20 CET
After recent impulsive count invalidation due to wave 1 and wave 2 overlap, the count has been re-visited, updated and re-labeled. The current situation is still not very clear as it looks like the market has returned to the range zone and the complex and time-consuming corrective cycle from the wave 1 purple top at the level of 145.67 has not been completed yet. After making a false breakout to the upside in wave (X) brown, the price retraced all of the advance and now is trading even below the important level of long-term support at 135.75. The trading conditions might get worsen in terms of whipsaws and false breakouts as the next wave of corrective cycle is coming - wave B black - and this wave is usually the hardest to trade. Nevertheless, there is still one more wave to the downside is missing, wave C black, and only when this last wave is completed, the market will be ready to resume the uptrend.
Support/Resistance:
135.56 - Intraday Support
135.71 - Technical Support
136.30 - Weekly Pivot
136.55 - Intraday Resistance
136.96 - WR1
136.93 - Technical Resistance
Trading recommendations:
The daytraders should consider opening buy orders only if the level of 136.55 is clearly broken with SL below the level of 135.55 and TP at the level of 137.04 with a possible extension to the level of 137.93.
The material has been provided by InstaForex Company - www.instaforex.com