General overview for 03/10/2014 08:20 CET
The corrective cycle in wave b purple has blown through 61%Fibo of the wave a purple and currently is consolidating in the supply zone between the levels of 1.1160 - 1.1187. Any breakout higher is still possible but only a clear violation of the last swing high at the level of 1.1222 resumes the bullish trend and opens the road to the higher price levels (alternative labeling). On the other hand, any failure in the supply zone will result in another leg to the downside, but only clear breakout below intraday support at the level of 1.1069 invalidates alternate count .
Support/Resistance:
1.1222 - Swing High
1.1160 - 1.1187 - Supply Zone
1.1129 - Intraday Support
1.1198 - Weekly Pivot
1.1069 - Intraday Support
Trading recommendations:
Currently the situation is rather unclear as the wave b purple is still in progress, so traders should refrain from trading until NFP news arrive and trade in the direction of the larger time frame trend, which is bullish.