Technical outlook and chart setups:
The EUR/USD pair drops below 1.2600 (interim) support, but is still expected to carve a higher bottom above 1.2500. The pair is testing fibonacci 0.786 support around 1.2560 levels as seen here. A bullish reversal here would still drag prices higher up to the 1.3100 mark in the sessions to come. On the flip side, a drop below 1.2500 would delay matters further and bring in bears to regain control. Support is now at 1.2500 on the 4H chart view while resistance is seen at 1.2760, followed by 1.2850/1.2900 levels respectively. It is still recommended to initiate long positions now (1.2570/80), risk remains below 1.2500.
Trading recommendations:
Remain long, stop below 1.2500, the target is 1.3120.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
