General overview for 02/10/2014 10:10 CET
After unexpected fifth wave failure, the market sharply reversed down breaking the important level of 1.1097 for impulsive wave progression. This means the green impulsive count is now invalidated due to wave (iv) and wave (i) overlaps, and new count, even more bullish is on the chart now. This labeling indicates a third black cycle labeled as wave (1) and wave (2) so far with invalidation line at the level of 1.0885. Currently the market is in corrective cycle wave (2) and it looks like the zig-zag pattern in the making. The projected target for this cycle is at the level of 1.0987 and sharp rebound is being expected from there.
Support/Resistance:
1.0987 - 1.0975 - Wave (2) target Zone
1.1033 - WS1
1.1070 - Intraday Support
1.1098 - Weekly Pivot
1.1129 - Intraday Resistance
1.1222 - Swing High
Trading recommendations:
Day traders should consider opening sell positions form current price levels, with SL above the level of 1.1130 and TP at the level of 1.0987.
The material has been provided by InstaForex Company - www.instaforex.com