Today's support and resistance levels:
R3: 138.45
R2: 138.01
R1: 137.77
Current spot: 137.69
S1: 137.58
S2: 137.45
S3: 137.37
Technical summary:
The break above 137.70 has left us with two opposite sceanrios. The first scenario is, that an expanded ending diagonal is unfolding (we have overlapping wave four and wave one. The only pattern that allows overlaps is the ending diagonal). If an expanding ending diagonal is unfolding, the we should see resistance at 138.01 to protect the upside for a decline below support at 136.89 confirming one final decline lower to 134.34 to end the correction from 145.69. The second scenario tells us, that the correction from 145.69 ended at 135.73 and that a new impulsive rally could be unfolding. Looking at the structure of the rally from 135.73, we prefer the expanded ending diagonal scenario for one final decline towards 134.34, where wave C will be equal in length to wave A.
Trading recommendation:
Our stop at 137.75 has been hit for a small loss. We will stay neutral for now and let the market show us its real hand.
The material has been provided by InstaForex Company - www.instaforex.com
