General overview for 02/04/2015 09:20 CET

As we anticipated yesterday, the corrective wave to the downside, labeled as wave c purple, had been completed and the whole abc purple corrective structure is in the shape of a nice zig-zag. Please notice that the market must break out higher above the intraday resistance at the level of 1.2627 and 1.2708 in impulsive fashion to confirm the end of the sharp correction in wave 2 black . Otherwise, the corrective structure will evolve into more complex and time consuming pattern as indicated by the alternative count.

Support/Resistance:

1.2503 - WS1

1.2561 - Weekly Pivot

1.2575 - Intraday Support

1.2627 - Intraday Resistance

1.2708 - Intraday Resistance

1.2712 - WR1

1.2771 - WR2

Trading recommendations:

Yesterday's sell orders should be closed now with profit and daytraders should consider to open buy orders from current market levels with SL below the level of 1.2575 and TP open for now.