General overview for 09/12/2014 11:20 CET

Black wave iii of the overall impulsive wave structure looks like it has topped. Now, the corrective cycle of wave iv has started. The key level for this cycle is 1.1422 as any violation of this level invalidates the main impulsive wave progression and put the whole impulsive count into question. The next best count would be then an ending diagonal wave blue 5 with more choppy and overlapping price action to come.

Support/Resistance:

1.1579 - WR2

1.1519 - WR1

1.1500 - Intraday Resistance

1.1460 - Intraday Support

1.1422 - Invalidation Level

1.1416 - Weekly Pivot

Trading recommendations:

The level of 1.1474 has been broken and buy orders advised yesterday should be still kept open as the TP is at the level of 1.1519 and 1.1579. Please remember that the uptrend is still intact and swing traders still should consider buying the dips as the market has to complete more waves to the upside. The SL orders should be moved a little higher, just below the level of 1.1422.