General overview for 02/12/2014 11:20 CET

After making five impulsive waves to the upside and hitting the supply zone between the levels of 1.1446 - 1.1465, the market reversed in a sharp corrective cycle. So far the labeling of this reversal is in the shape of a double zig-zag pattern, but as long as the level of 1.1435 is not violated, the pattern might evolve into a triple zig-zag. That would mean another leg down can be made here and the projected level for this leg is at the level of 1.1296. Nevertheless, the alternative count indicates a possibility of a completed corrective cycle at the level of 1.1311 (alt:(ii)). Now, any impulsive breakout above the intraday resistance at the level of 1.1360 and then above the weekly pivot at the level of 1.1379 might be considered as a new upward wave beginning.

Support/Resistance:

1.1465 - Swing High

1.1446 - 1.1465 - Supply Zone

1.1379 - Weekly Pivot

1.1360 - Intraday Resistance

1.1317 - WS1

1.1295 - Intraday Support

Trading recommendations:

The uptrend is still not intact and traders still should consider buying the dips as the market has to complete more waves to the upside. All SL should be placed below the level of 1.1295.