Technical outlook:
Yesterday, the EUR/USD pair dropped lower and hit a fresh low below the 1.1226 levels, but managed to stay above the 1.1183 levels. The wave structure is still calling for an aggressive rally, although it is a counter trend towards 1.1300 and up to the 1.1350 levels going forward. The bottom line for this scenario is that prices should remain above the 1.1183 levels for now. Please note that the 1.1300 levels are the back side of the immediate support line, while the 1.1350 levels are the Fibonacci 0.618 resistance of the previous lower border between the levels of 1.1448 and 1.1183, respectively. Also note that resistance at the 1.1448 levels is strong and the prices need to break above it in order for bulls to come back into play. A divergence scenario is also playing out between EUR/USD and US Dollar Index around this time. The index hit a new high, while EUR/USD refrained from reaching new lows below the 1.1183 levels. This might not be a strong confirmation but at least an indication of a potential reversal of the current trends.
Trading long:
Aggressive traders, remain long against the 1.1183 levels, targeting 1.1300 and 1.1350, respectively.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com