General overview for 02/02/2016:
The pair has reached another local low, but it is still trading inside a range zone. Nevertheless, an upside breakout is likely to take place soon as diminishing downward momentum and bullish divergence can be observed between the price and momentum oscillator. Moreover, there is an uncompleted wave progression to the upside which indicates that wave c purple should reach a local high at the level of 1.4272. Please note a larger uptrend is still intact in this time frame, but the corrective cycle might get more complex and more time-consuming.
Support/Resistance:
1.4690 - Swing High
1.4553 - WR3
1.4436 - WR2
1.4324 - Technical Resistance
1.4173 - WR1
1.4061 - Weekly Pivot
1.4039 - Intraday Resistance
1.3907 - Intraday Support
1.3798 - WS1
Trading recommendations:
We are still expecting bullish wave c to the upside. So, day traders should consider placing buy orders today if the intraday resistance at the level of 1.4039 is violated. The SL orders should be placed below the level of 1.3907 and TP at the level of 1.4173.
