General overview for 14/07/2014 09:20 CET

The last corrective wave to the upside labeled as wave Y brown is developing as anticipated. There are two possible target levels for wave Y brown termination. The first level is 38% Fibonacci retracement of the whole wave 1 and it is at the level of 1.0754. The second target zone is at the level of 1.0793 which is 50% Fibonacci retracement. Please, notice that the momentum indicator starts to diverge from the price and this is typical indication for a possible top in this pair. Any breakout below intraday support at the level of 1.0724 confirms the bearish case.

Support/Resistance:

1.0793 - 50%Fibo

1.0786 - WR2

1.0754 - 38%Fibo

1.0724 - Intraday Support

1.0708 - Weekly Pivot

1.0695 - Technical Support

1.0680 - WS1

1.0602 - WS2

Trading recommendations:

Daytraders and swingtraders might consider to open short positions from the level of 1.0754 (aggressive entry) and 1.0793 (classic entry) with SL above the level of 1.0803 and TP open for now on.