General overview for 18/11/2016:
The complex and time-consuming corrective cycle in wave 4 might have been terminated at the level of 1.2672, just below the 50%Fibo level. Moreover, it looks like the market is making a Head&Sholuders pattern with a neck line just around 1.2400 level ( dashed blue line). If this scenario is true, then the key level would be the resistance at the level of 1.2510, because any break out higher would expose the recent high of the wave 4. Another important level is the gray rectangle are between 1.2306 – 1.2331. This is supply breakthrough zone and if broken, then the lows of the wave b will be tested soon.
1.2940 – 1.2865 – 61% Fibo Zone
1.2846 – WR2
1.2730 – WR1
1.2672 – Wave 4 Top
1.2541 – Weekly Pivot
1.2509 – Key Level
1.2411 – WS1
1.2306 – 1.2331 – Supply Breakthrough Zone
1.2224 – WS2
1.2080 – Wave b Low
Sell order should be opened only is the neck line is clearly violated and the level of 1.2509 is still providing the resistance. Otherwise staying aside and refraining from trading is a good choice*.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.