Technical outlook:
An hourly chart for EUR/USD has been presented here for a short-term outlook of price action and wave structure. The EUR/USD pair finally rallied through resistance at 1.1420 levels yesterday as we discussed and remained prepared. A sharp reversal was also in line with expectations, with the wave structure presenting an impulse rally between 1.1235 and 1.1420 levels. Please note that the corrective drop should unfold into 3 waves pushing prices lower towards 1.1320/30 or 1.1300/10 levels today during the New York Session. With prices seen at 1.1370 levels at this moment of writing, one can expect a push towards 1.1400/10 levels and then drop lower as highlighted above. Besides, note that a fibonacci convergence is seen around 1.1320/30 levels and hence a potential bullish reversal remain high probability from there. An ideal trading strategy could be to be prepared for a drop and look for opportunities to go long for a continued rally towards 1.1500 and 1.1750 levels in the weeks to come.
Trading plan:
1. Aggressive: Short @ 1.1405/10, stop 1.1430, target 1.1330
2. Conservative: Long @ 1.1320/30, stop @ 1.1201, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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