General overview for 07/02/2014 08:30 CET
The impulsive breakout after the news has not been finished and one more wave to the upside is needed before the corrective cycle will start. The target level of wave (v) is 61% Fibo at the level of 139.32. From that level quite strong resistance starts, that consists of the supply zone between the levels of 139.22 - 139.50 and weekly resistance pivot at the level of 139.62. Please notice that the level of 137.58 has not been tested yet and last leg of coming correction might try to perform a test of this level when impulsive cycle is finished.
Support/Resistance:
139.62 - WR1
139.32 - 61%Fibo
139.22 - 139.50 - Supply Zone
138.89 - Intraday Resistance
138.55 - Weekly Pivot
138.44 - Intraday Support
137.58 - Technical Support
Trading recommendations:
After the important news release the market is trending higher but breakout below the level of 138.44 is bearish and sell stop orders should be placed from this level with SL above the intraday high and TP at the level of 137.58.