Technical outlook and chart setups:
The EUR/USD pair has retreated sharply from 1.1300 level yesterday confirming that a meaningful top is in place and that the pair is heading lower towards parity levels. The pair is seen to be trading at 1.0890 level for now, looking to produce a pullback before continuing lower again. Looking at the wave structure, the pair seems to have completed its wave 1 from 1.1300 level within the 5-wave drop expected. The pair is now expected to produce a rally towards at least 1.1050 level, which is fibonacci 0.382 resistance of wave 1 as depicted here. The pair should be facing stiff resistance around 1.1140 level, if prices reach there. Bears are expected to regain control again. It is recommended to remain flat for now and allow prices to pullback to enter short again. Immediate resistance is seen at 1.1130 level, while support is seen at 1.0850 level respectively.
Trading recommendations:
Remain flat for now and prepare to go short around 1.1050/1.1140 levels, stop at 1.1300, targeting lower.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com