General overview for 03/11/2014 11:10 CET
The previous count that indicated a somewhat extended corrective cycle in wave B black has been invalidated when the market made a new high above the wave (xx) brown high. That means the wave (Z) brown of the correction has been completed and now it looks like the market has started a new impulsive wave to the upside. This assumption will be confirmed if all supply levels on a daily chart are violated. Those levels are: 142.02 - 142.42, 143.35 - 143.85 and 144.98 - 145.65 zone. On lower time frames, we can see an impulsive wave development to the upside that starts with waves 1 and 2 blue, then waves (i) and (ii) green and currently wave (iv) green is in progress. The support comes at the level of 140 and any breakout higher above the level of 143.36 is bullish.
Support/Resistance:
143.36 - Swing High
140.11 - Weekly Pivot
140.00 - Intraday Support
138.87 - WS1
135.35 - WS2
Trading recommendations:
Day traders should consider to open short orders at the current price levels with SL just above the level of 143.37 in order for a corrective cycle in wave (iv) green to continue to the downside a little bit. TP orders should be placed at the level of 140.11.
The material has been provided by InstaForex Company - www.instaforex.com