General overview for 28/10/2016:
The rising wedge pattern that is in progress clearly indicates the possibility of another sell-off as the growing divergence between the price and the momentum indicator is waiting for confirmation. The sudden decline towards the demand zone has been labeled as the wave -a- (black) of the overall corrective structure. This recent high might be labeled as wave -b- (black). There is still wave c (black) missing from the overall correction. The projected target for wave c (black) has been raised to the level of 1.3250, just below the weekly pivot at the level of 1.3255.
Support/Resistance:
1.3400 – Local High
1.3397 – Wave a Top
1.3290 – 1.3311 – Demand Zone
1.3255 – Weekly Pivot
1.3157 – WS1
Trading recommendations:
Day traders might again consider opening the sell orders with SL just above the recent swing high and TP at the level of 1.3255.
The material has been provided by InstaForex Company – www.instaforex.com
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