General overview for 09/02/2016:
A (a) (b) (c) corrective pattern in wave 2 stopped in the reversal zone between the levels of 128.20 and 128.50. The shape of the corrective cycle might be called an irregular flat correction, which is typical for wave 2. Currently, the market looks ready for reversal, but to confirm this, the price must break out back above the level of 129.70. Any failure to rally will result in more complex and time-consuming corrective cycle. Any breakout below the level of 126.08 will invalidate this bullish scenario.
Support/Resistance:
132.66 - WR2
132.32 - Local High
131.32 - WR1
130.66 - Weekly Pivot
130.03 - Intraday Resistance
129.34 - WS1
128.20 - Intraday Support
128.76 - WS2
127.29 - WS3
Trading recommendations:
We still expect the market to go upwards as an impulsive structure does not looks completed and the important bottom seems to be in place as well. This is why day traders should place buy orders as long as the level of 128.20 is not violated (SL below 128.20, TP open for now).