Technical outlook:
The EUR/USD pair dropped below 1.1280 levels yesterday taking longs out, but we were at a minimum risk. The trade setup still remains both sides, with a little bias towards the south. The EUR/USD pair is trading at 1.1240 levels at this time in writing and seems to have found interim support at the fibonacci 0.618 ratio of the rally between 1.1183 and 1.1324 levels earlier, as displayed here. At the same time, please be aware that prices have broken below its counter trend line support and re-entered into the sell zone, giving an edge to the bears. In either case, we can expect a rally at least towards 1.1280/85 levels before deciding a further course of direction. On the flip side, a fibonacci 0.618 bounce could also enable a push higher towards the 1.1340/50 region. As a subset of both scenarios, a rally is the most likely outcome for now, towards at least 1.1280/85 levels, if not higher. Also note that the RSI has already turned higher from 30 levels, which is also supportive to the above conclusion.
Trading plan:
Long again @ 1.1230, stop at 1.1180, target 1.1285 and higher.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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