Technical outlook and chart setups:
The EUR/USD pair looks to be setting up for resumption of rally towards the levels of 1.1800 from here on. As depicted here, the pair broke out of the resistance line earlier and dipped lower into the levels of 1.1250 in a corrective (3 waves) manner. Furthermore, the levels of 1.1250 were also the Fibonacci 0.618 support level of the rally between the levels of 1.11 and 1.1530. The pair bounced off from there and is trading at the levels of 1.1420 for now, poised to rally further. It is strongly recommended to remain long for now and also to add further on dips with risk at the levels of 1.1200. Immediate support is seen at 1.1300 (interim) followed by 1.1250, 1.1200 and lower, while resistance is seen at 1.1650 followed by 1.1850 and higher, respectively.
Trading recommendations:
Remain long for now. Stop is at 1.1200, target is 1.1800.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
