General overview for 06/05/2016:
Two possible scenario are available here to consider:
– Impulsive Decline Scenario – indicates the possible top of the wave 4 at the level of 1.1615 – in this case we should see a five wave development towards the level of 1.0824, break out lower towards 1.05555 and then new lows with projected target around 1.0166.
– Corrective Pattern Continuation Scenario – indicates only a top for wave C at the level of 1.1615 of the overall big triangle formation in wave 4 – in this case we should see a three wave move, possibly in a shape of a zig-zag with target around the level of 1.0555 (wave alt: D) and the a rebound and another three wave leg up towards the level of 1.1500 (wave alt: E ). This is the level for the triangle to be terminated and impulsive decline starting point.
1.0000 – EUR/USD Parity Level
1.0166 – Min. Target Projection for Wave 5
1.0438 – Weekly Technical Support
1.0827 – Daily Techncial Support
1.1216 – Daily Technical Support
1.1465 – Daily Technical Resistnace
1.1615 – Wave 4 High
1.1719 – Weekly Technical Resistnace
1.1719 – 1.1530 – Weekly Supply Zone
The swingtraders should consider to open the sell orders from current price levels with SL above the recent swing high at the level of 1.1615 and TP open for now. Nevertheless, the most important intraday technical support is at the level of 1.1211 and as long as it is not broken, bulls are in control over this market.