General overview for 08/06/2016:
The green impulsive count has been invalidated due to wave one and wave two overlaps. An alternative count has been made to incorporate the recent wave developments. In this count, in 4H time frame, the main swing low at the level of 1.2460 is still the point of reference for all the further wave developments. It can be the bottom of the wave 4, but it might be just a part of this wave in a shape of the wave A of 4. Moreover, the recent three wave rally to the upside has ended between the 23%Fibo and 38%Fibo, which is very unusual. This is why there might be still one more wave to the upside missing ( wave Y on the chart), which will eventually break out above the wave W high at the level of 1.3187. On the lower time frames like H1, the growing intraday bullish divergence between the price and the momentum oscillator is supporting the bullish rally view.
1.2678 - 1.2700 - Projected Target For Wave X
1.2754 - Intraday Resistance
1.2825 - WS1
1.2984 - Weekly Pivot
1.3054 - WR1
1.3188 - Wave (i) High
1.3210 - WR2
Day traders should keep an eye on the level of 1.2700 and place all SL orders for buy orders just below this level. The market is still in the corrective cycle, but buying the dips is the way to trade it now.