Technical outlook:
An hourly chart view for EUR/USD has been presented today to confirm a potential bullish reversal. As discussed earlier, the EUR/USD pair was expected to produce a counter trend corrective drop from the highs at the 1.1420 levels. The prices dropped over 100 pips since then and made a low at the 1.1308 levels yesterday. Please note that the EUR/USD pair has bounced from the Fibonacci 0.618 support at the 1.1304 levels as seen here. The corrective drop could be finished at yesterday's lows at the levels of 1.1308 or it may produce another low; but ideally, stay above the 1.1235 levels. Looking at the above wave structure, an impulse has been followed up by a corrective wave. Ideally, Wave 3 impulse is expected to resume once a bottom formation is complete. Price support is seen at the 1.1270 levels while resistance is at the 1.1410 levels, respectively.
Trading plan:
Exit short positions. Long now, stop below 1.1235, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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