General overview for 16/10/2014 10:00 CET

The corrective cycle in wave (4) was a quite sharp and sudden decline that almost invalidated the overall bullish count, breaking below both intraday support levels. Currently the suggested wave count in corrective cycle might look like a triangle formation if two more waves will be made inside of it before the level of 1.1220 is eventually broken. This level is invalidation line and if it is broken, then the overall wave development on larger time frames would suggest more downside wave progression will be made as the bigger cycle wave 4 green has not been completed yet.

Support/Resistance:

1.1385 - Swing High

1.1369 - WR2

1.1291 - WR1

1.1227 - Intraday Support

1.1220 - Black Impulsive Count Invalidation Line

1.1186 - Weekly Pivot

Trading recommendation:

As long as the level of 1.1220 is not broken the bias is still bullish as there is at least one more wave to the upside missing to complete the cycle. Buying the dips is advised with SL below the level of 1.1219.