General overview for 02/02/2015 10:05 CET

The orange rectangle projected target area for wave v black from last Friday has been hit and the market did make some sort of the correction to the downside. However, so far the corrective cycle has been really small, and there is still a chance that the extension upward will continue if the level of 1.2800 is broken. Please notice the bearish divergence between the price and the momentum oscillator is getting bigger and meaningful reversal/correction might happen any time now.

Support/Resistance:

1.2897 - WR1

1.2799 - Swing High|Intraday Resistance|

1.2636 - Weekly Pivot

1.2602 - Intraday Support

Trading recommendations:

Daytraders should consider opening a buy stop orders from the level of 1.2800 with SL below the level of 1.2668 and TP at the level of 1.2897. It is not a good level to open a long-term swing buy positions.