General overview for 26/08/2014 14:10 CET
The corrective cycle is fully in progress and the last remaining wave to the downside is missing here. There are three main target levels for green wave c of the corrective cycle to complete. The first target is at the level of 1.0959 and the shape of the correction would be a running flat. The second target is at the level of 1.0936 and the shape of the correction would be a running flat again. The last target is at the level of 1.0920 and the shape of the correction would be an irregular flat. Please, notice that all of those corrective cycle are simple corrections and the market might evolve into more complex and time-consuming. Any breakout below the level of 1.09200 is bearish and the possibility of last swing low test would increase.
Support/Resistance:
1.1020 - WR1
1.0999 - Swing High
1.0974 - Intraday Resistance
1.0959 - Target Level #1
1.0947 - Weekly Pivot
1.0936 - Target Level #2
1.0920 - Target LEvel #3
1.0911 - WS1
Trading recommendations:
Swing traders should keep the long-term buy orders still open with the SL below the level of 1.0858.
Day traders should open short positions only if the level of 1.0958 is violated and this is for a quick scalp trade only with TP at the level of 1.0936.
It is recommended to refrain from trading and wait for the corrective cycle to complete.
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The material has been provided by InstaForex Company - www.instaforex.com