General overview for 02/08/2016:
There are two possible Elliott wave scenarios regarding the upcoming termination of the counter- trend wave 2 and price reversal in order to return to the main trend (which is DOWNSIDE):
– Main Scenario – Green Arrows – indicates a possible congestion area in corrective sub-cycle in wave (iv) and then one more wave to the upside towards the level of 1.1254. The corrective structure, therefore, would be in a shape of (a)(b)(c) Irregular Flat
– Alternative Scenario – Red Arrows – indicates a possible termination of an abc-x-abc double three upward wave progression when the level of 61%Fibo is hit.The reversal should happen in impulsive fashion and it should break out below the level of 1.1197 and 11.1154 like no tomorrow.
1.1303 – WR1
1.1254 1.1228 – Fibo retracement zone
1.1216 – 161%Fibo Ext of the previous structure
1.1190 – Intraday Support
1.1154 – Intraday Support
1.1129 – Weekly Pivot
1.1060 – WS1
Due to the fact that the higher time frame trend is still down and there are some indications that a corrective cycle might be completed, sell orders are preferred from the grey zone area with a rather tight SL*.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.