Technical outlook and chart setups:
The EUR/USD has been drifting sideways for last 24 hours with no change in its structure and pricing. The pair is seen to be trading at 1.0879 levels for now and needs to push through at least 1.1040 levels to confirm further upside or to complete retracement. Please note that probability remains for a pullback rally for this week, since smaller time frames are showing bullish divergences since last week. The pair is expected to rally and take out 1.1040 levels to confirm that bulls are here to remain longer and extend rally through 1.1100 levels or it would be a wave 4 pullback. The probability for wave 4 terminations at 1.1040 levels remains high at this moment according to the wave counts shown here. Looking at the wave structure, the pair looks to be preparing to push higher towards 1.1040 and 1.1100 levels. It is recommended to remain flat for now and look for further evidence of a bottom formation. Immediate resistance is seen at 1.1040 levels, while support is seen at 1.0850 levels respectively.
Trading recommendations:
Remain flat for now. Aggressive traders might initiate long positions now with risk at 1.0850 levels.
Good luck!
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