Today's Support and Resistance levels:
R3: 130.79
R2: 130.67
R1: 130.54
Current Spot: 130.41
S1: 130.24
S2: 129.93
S3: 129.33
Technical summary:
The blue wave ii correction turned out to be an expanded flat correction as we saw the low of wave b at 129.33 (below the low of wave a) and the high of wave c at 130.79 (above the top of wave a). As long as support at 129.93 and, more importantly, support at 129.33 protects the downside, the correction could be more complex, than we already has seen. However, at this point we do not expect a more complex correction and will be looking for signs that blue wave iii is developing. The first sign will be a break below 129.93 and confirmation upon a break below 129.33, which will indicate that blue wave iii is indeed developing. The first target for blue wave iii will be at 126.07, where blue wave iii will be 1.618 times blue wave i. After an expanded flat correction we should always expect an extended impulsive wave to follow. As said, the risk is a more complex wave ii correction, which will be the case if support at 129.93 protects the downside for a break above 130.79, which would call for a move higher towards 131.17 - 131.36, but that is not our preferred count at this point.
Trading recommendation:
We sold EUR at 129.55 and will keep our stop at 132.80 for now expecting to be able to lower it soon. If you are not short EUR already then sell a break below 129.93 with the same stop at 132.80.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Elliott Wave analysis of EUR/JPY for August 1, 2013 . Thanks for your support on Elliott Wave analysis of EUR/JPY for August 1, 2013
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