Technical outlook:
The EUR/USD daily chart has been presented here to look forward for the next potential move. The structure highlighted here and the subsequent price action till now is suggesting that EUR/USD should be set for a temporary counter trend rally towards the 1.1950/1.2000 handle, before continuing lower again towards 1.1500 levels and lower. As seen yesterday, the single currency pair has taken off a major support around 1.1717 levels and to go by the simple law, prices should pullback from current levels. Prices resistance comes in near 1.1990 levels while the 0.382 percent fibonacci resistance is seen around 1.1957 levels as shown here. This should be the next lower high, before EUR/USD proceeds further lower towards 1.1500 levels going forward. Looking at the wave counts, the EUR/USD looks to have either completed wave (3) or is into its wave 4. In either cases, we should witness a rally from current levels pushing through 1.1950/1.2000 levels.
Trading plan:
Aggressive traders please go long with stop below 1.1675 levels targeting 1.1950/60. Conservative traders please remain flat for now and look to sell around 1.1950/60 levels again.
Fundamental outlook:
GBP Carney and Dudley speak at BoE Markets Forum in London at 03:00 AM EST.
Good luck!
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