General overview for 18/05/2016:
The wave (ii) green might have been completed as a three-wave running flat structure, and now the market is developing an impulsive upward structure. If this assumption is correct, the next wave progression we should see would be an impulsive five-wave rally in sub-wave iii of the overall impulsive pattern. Any break out below the intraday support at the level of 1.2874 would invalidate this scenario and make wave (ii) green even more complex and time consuming.
Support/Resistance:
1.3160 - WR2
1.3065 - WR1
1.3014 - Technical Resistance
1.2918 - Weekly Pivot
1.2872 - Intraday Resistance
1.2821 - WS1
1.2757 - Technical Support
Trading recommendations:
Day traders should consider buying at the dips in this market with SL below the level of 1.2757 and TP open for now, because we expect an impulsive wave progression to the upside to continue in the near term.
