General overview for 06/05/2016:
The wave b of the possible irregular correction was made, and now the market is ready for drop. The first target level for wave c of wave (ii) is technical support at the level of 1.2758, but the correction might extend even lower. When the corrective cycle is completed, the impulsive rebound upward should take the price above the recent intraday resistance at the level of 1.2883 and ultimately target the levels above 1.3000 before any meaningfully correction will occur.
1.2434 - WS1
1.2574 - Weekly Pivot
1.2651 - WR1
1.2759 - Wave XX High | Intraday Support |
1.2792 - WR2
1.2873 - WR3
1.2883 - Intraday Resistance
Day traders should consider opening sell orders from the current price levels with tight SL (10-15 pips) and TP at the level of 1.2757. This is a trade setup for the last leg down in the corrective structure.
Besides, they should consider opening buy orders from the level of 1.2758 with tight SL (10-15 pips) and TP open for now. We expect a rebound upwards once the corrective cycle is completed.