Technical outlook:
The 4H chart for EUR/USD presented here again for a medium-term wave structure and outlook. Prices broke out as expected yesterday and tested the 1.1404 resistance before reversing lower. Please note that EUR/USD bulls did not quite manage to reach the fibonacci 0.618 distance at 1.1425 but a minimum criteria for an impulse can be considered to be complete at 1.1404 levels as well. We still do not rule out a possibility of a push through 1.1425 but the real trade setup is to consider buying on a dip towards 1.1300 as highlighted here. Do not be surprised if the retracement or pullback could extend itself to 1.1260/70 levels, which is the fibonacci 0.786 retracement of the distance between 1.1235 and 1.1404 levels respectively. For the above wave structure to hold true, prices should remain above 1.1235 levels going forward. We can expect the drop in the next 1-2 trading sessions, setting up for the next few weeks for achieving potential targets above 1.1500.
Trading plan:
Look to buy around 1.1300 levels , stop below 1.1235, target above 1.1500
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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