General overview for 24/10/2016:
The daily chart of the recent wave development between the levels of 1.2460 - 1.3339 looks clearly corrective, mainly due to the plenty of whipsaws, false breakouts and overlapping sub-waves. The current labeling relates to the complex corrective triple-three structure, labeled as the waves WXYXXZ brown. All of them are a part of a larger time frame correction labeled on the chart as waves A and B (purple). The question remains, whether the current progression to the upside in about to terminate around the 38%Fibo at the level of 1.3311 or the market will push higher towards the next resistance level (and possibly upper channel boundary). The intraday chart might suggest that only two more waves are missing here to terminate the overall corrective pattern in wave B (purple) just around the 38%Fibo level. From the top of the wave a (green) at the level of 1.3358 the intraday wave progression supports a bearish wave development towards the level of 1.3200 before any last rally upwards will happen. The growing negative divergence supports the view as well.
Support/Resistance:
1.3358 - Wave a Top
1.3311 - Intraday Resistance
1.3290 - 1.3311 - Demand Zone
1.3255 - Weekly Pivot
1.3157 - WS1
Trading recommendations:
Day traders might consider opening sell orders only for an intraday trade. The SL should be placed tight (15-20 pips) and TP might be placed at the level of 1.3281 or lower.
