General outlook for 11/05/2015 09:30 CET
The current impulsive structure that had been developing since the top of the wave B at the level of 135.97 is so far in three waves and there is a high probability that the leading diagonal pattern if forming now. The price can not go higher than intraday resistance at the level of 135.36 to continue making this pattern, because if it does, the leading diagonal will be invalidated. So, the equally legs of the ABCD pattern labeled in blue had produced a small bounce from the intraday support at the level of 133.47. It might continue higher in no new low is made. Please notice that the technical support at the level of 133.09 is the key level for bulls as any break out lower means trading in a bearish zone.
131.47 – WS2
132.73 – WS1
133.09 – Technical Support|Key Level|
133.47 – Intraday Support
134.33 – Weekly Pivot
135.36 – Intraday Resistance
135.56 – WR1
135.97 – Swing High
As long as the market is below the weekly pivot and dynamic golden trend line resistance the daytraders should consider to open sell orders with SL above the level of 135.00 and TP at the level of 133.09 with a possible extension downward.
The material has been provided by InstaForex Company – www.instaforex.com