General overview for 26/05/2015 08:10 CET
Yesterday's slow and time-consuming up move had been labeled as wave b purple of the overall corrective cycle that should develop even more to the downside. If this labeling is correct, the intraday support at the level of 1.2275 will be tested soon and violated together with technical support at the level of 1.2256. Please notice the bearish divergence is supporting our view for a corrective cycle to develop to the downside.
1.2320 – Swing High
1.2275 – Intraday Support
1.2256 – Technical Support
1.2234 – Weekly Pivot
Daytraders should still consider opening sell orders as close to the level of 1.2320 as possible with a very tight SL ( 20-30 pips) and set TP orders at the level of 1.2256 with a possible extension downward to the level of 1.2234.
The material has been provided by InstaForex Company – www.instaforex.com