General overview for 04/02/2015 10:49 CET

The orange rectangle zone acted very well as the reversal/target zone for bulls. After hitting this zone the pair is in corrective decline that has almost 450 pips so far. This corrective cycle has been labeled as wave W brown and as the first leg of a possible more complex corrective cycle. The key level for the scenario is the intraday resistance at the level of 1.2552 and any breakout above this level means that the bottom for the wave W brown has been established. Please notice that the market has fallen out of the golden bullish channel too, but it has not entered the bearish zone yet.

Support/Resistance:

1.2897 - WR1

1.2799 - Swing High

1.2648 - Intraday Resistance

1.2636 - Weekly Pivot

1.2552 - Intraday Resistance|Key Level|

1.2474 - WS1

1.2351 - Intraday Support

Trading recommendations:

The sell orders from yesterday hit the TP level, and currently traders should refrain from trading and wait for clearer structure to emerge.