General overview for 30/12/2014 09:30 CET
The overnight price action has finally broke out of the tight trading zone and after making a false upside breakout with doji candle, the market sharply reversed and broke the intraday support at the level of 146.43. Currently, this level is the key level in the analysis as there are two possible Elliott wave scenarios available. The main scenario indicates a completed corrective cycle in wave XX brown, and another leg to the downside is being expected to complete the last wave Z brown in wave 2 red. The alternate scenario indicates an unfinished wave XX brown in a shape of an irregular flat correction, where wave (a) and (b) blue are done and now wave (c) blue to the upside is anticipated. The confirmation of the main scenario comes with the level of 146.43 rejection. On the other hand, the confirmation of the alternative scenario comes with the level of 146.43 violation. Any new low below the level of 144.97 supports the main scenario .
Support/Resistance:
149.76 – Technical Resistance|Swing High|
148.35 – WR3
148.22 – Technical Resistance
147.74 – WR2
147.17 – WR1
147.13 – Intraday Resistance
146.54 – Weekly Pivot
146.44 – Intraday Resistance|Key Level|
145.92 – WS1
145.70 – Technical Support
145.39 – WS2
144.97 – Intraday Support|Swing Low|
144.82 – WS3
Trading recommendations:
Daytraders should stay aside and watch the price will either test the level of 146.43 (and trade the breakout or a rejection), or price will violate the level of 144.97 ( and trade the downside breakout). Please use tight SL orders as the end of the year liquidity is low and the market moves might get very sharp and sudden in either direction.
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Performed by Sebastian Seliga, Analytical expert InstaForex Group © 2007-2014 |
Technical analysis of EUR/JPY for December 30, 2014
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