Technical outlook and chart setups:
The EUR/USD pair had print fresh lows towards 1.0851 levels yesterday, before reversing sharply and breaking above its sideways range. The pair is seen to be trading at 1.0920 levels for now and should be poised to push through 1.0992 levels at least as depicted here (kindly note that the chart was prepared a few hours back and hence the effect is already observed). Please note that probability remains for a continued push higher in a counter trend rally this week. It is expected to rally and take out 1.1040 levels to confirm that bulls are here to remain longer or it would be considered as wave 4 pullbacks. The probability for wave 4 terminations at 1.1040 levels remains high at this moment according to wave counts discussed yesterday. Looking at the wave structure, the pair looks to be in a corrective wave 4 rallies which should ideally terminate around 1.1040 levels. It is recommended to go long now, with risk below 1.0850 levels. Immediate resistance is seen at 1.1040 levels, while support is seen at 1.0850 levels respectively.
Trading recommendations:
Remain long now, stop below 1.0850 levels, target is 1.1040.
Good luck!
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