General overview for 06/07/2016:
(previous analysis of this pair can be seen here)
There are two possible scenarios for this pair as the impulsive cycle to the upside does not look completed:
– Scenario 1 – Main Count – the impulsive rally towards the level of min.0.9955 has not been completed yet and if the intraday resistance at the level of 0.9836 is violated, then the break out above the golden descending trend line will take place. The invalidation of this scenario comes with the level of 0.9516 violation (green arrows)
–Scenario 2 – Alternative Count – the corrective cycle in wave 2 has not been completed yet and at least one more wave to the downside is needed. Any break out below the intraday support at the level of 0.9685 will confirm this scenario. The invalidation of this scenario comes with the level of 0.9443 violation (red arrows).
0.9443 – Invalidation Level
0.9516 – Invalidation Level
0.9620 – WS2
0.9670 – WS1
0.9685 – Intraday Support
0.9752 – Weekly Pivot
0.9797 – WR1
0.9836 – Intraday Resistnace
0.9882 – WR2
0.9931 – WR3
As long as the level of 0.9658 is not clearly violated only buy orders should be opened because there is still uncompleted wave development to the upside*.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.