General overview for 07/02/2017:
The corrective cycle decreased to 127% Fibo extension at the level of 119.57 and the move down looks exhausted now. The wave c (green) of the wave Z (brown) might be now completed, so the market can rebound towards the intraday resistance at the level of 120.20. If this level is clearly violated, then the next important resistance is at the level of 121.01, which is the old wave a (green) bottom. Please notice that according to the current Elliott wave count, the wave progression to the downside is only a counter trend correction in the overall structure and one more move to the upside is needed to complete the cycle.
Support/Resistance:
123.84. - WR2
123.30 - Wave XX Top
122.41 - WR1
121.70 - Weekly Pivot
121.01 - Technical Resistance
120.52 - Technical Support
120.20 - Intraday Resistance
119.57 - Intraday Support
Trading recommendations:
Sell orders from yesterday had been closed with profit at the level of 120.52. Currently, day traders should consider buying the dips as the market goes down, because there are two reasons that support this trade: the corrective cycle in wave (4) is about to complete and one more wave to the upside is needed to complete the overall impulsive structure to the upside.
