General overview for 16/05/2014 08:50 CET
The current count is still very bearish and lower prices should be expected, but the chances are rising for a short-term upside bounce as the bullish divergence is building on the momentum oscillator on H1 time frame. That means the key level here to keep an eye on is at the level of 139.38 - 139.45 zone because any breakout above this zone will be the first clue that the corrective cycle has started. Moreover, any breakout above next technical resistance at the level of 139.87 would invalidate the impulsive bearish count. Otherwise more downside is anticipated with the fist target at the level of 138.86 with a possible extension to the level of 138.15.
Support/Resistance:
139.87 - Technical Resistance
139.38 - 139.45 - Intraday Resistance |Key Level |
138.97- Intraday Low
138.86 - WS1
138.15 - WS2
Trading recommendations:
Daytraders should open buy stop positions if the level of 139.46 is broken with SL below the level of 139.08 and TP at the level of 139.87.
Swing traders should still keep the running short positions as lower prices are still expected with SL slightly above the level of 140.20.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Technical analysis of EUR/JPY for May 16, 2014 . Thanks for your support on Technical analysis of EUR/JPY for May 16, 2014
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