General overview for 18/10/2016:
After the flash-crash ( labeled as the wave 3 on the chart) the market is now developing a corrective structure in wave 4. So far three waves are almost done, but the market might evolve into more complex and time-consuming structure like triangle any time soon. The line in a sand for bears seems to be the 38%Fibo at the level of 1.2509 and this is the level where the market might terminate the correction. The longer-term bias is still bearish.
1.1933 - Swing Low
1.1989 - WS1
1.2091 - Wave b Bottom
1.2215 - Weekly Pivot
1.2346 - WR1
1.2509 - 38%Fibo
1.2580 - WR2
Swing traders should still keep the sell orders as the impulsive wave progression to the downside hasn't been completed yet.
Day traders should look for entry to sell on rallies*.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.