General overview for 09/06/2015 14:25 CET
As anticipated, after breaking yesterday's support at the level of 1.2432, the market went down to the level of 1.2323, almost where the technical support is. Currently, the pair is trading in a very interesting zone, just above the important technical support at 1.2321. There is a high probability of a bounce and reversal in this zone, as wave (c) blue looks completed and the building bullish divergence on momentum oscillator supports this view.
Support/Resistance:
1.2256 - WS2
1.2321 - Technical Support|Intraday Support|
1.2342 - WS1
1.2451 - Weekly Pivot
Trading recommendations:
As we have been repeating all the week so far, it is better to stay aside and wait for the corrective cycle to complete. Now the cycle might look finished and buying on dips is the way to trade on this market at the moment. Please use a tight SL (20-30 pips) and wait for a daily candle close: any level above 1.2321 would be a good indication of possible reversal coming soon.
The material has been provided by InstaForex Company - www.instaforex.com