Technical outlook:
The EUR/USD pair has managed to hold interim support at 1.1180 levels, which was the 0.382 fibonacci extension of the drop between 1.1560 through the 1.1290 levels, respectively. The 4H chart presented here is indicating that a push above the 1.1300 levels could bring bulls back into play. Immediate price resistance is seen at the 1.1420 levels and the prices need to break above that to confirm a trend reversal. On the lower time frames, an impulse could be ready if the prices break above the 1.1246 levels today, while holding above the 1.1200 levels. We would be inclined to go long further on dips after that, with a price target above the 1.1420 levels at least. It is a safe strategy to remain flat for now and wait for further price action to unfold before taking a trading direction again. Believe it or not, downside potential is minimum looking at the risk-reward ratio here. We shall be preparing to go long again, going forward.
Trading plan:
Remain flat for now. Prepare to go long on confirmation soon.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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