Technical outlook:
We have again presented an hourly chart of EUR/USD to understand its short-term probable direction. As discussed yesterday, EUR/USD has reversed lower from 1.1514 and has also briefly broken below its support trend line. The entire previous rally from 1.1289 to 1.1514 could be retraced lower, before EUR/USD resumes its uptrend again. We have depicted the fibonacci retracement levels of the entire upswing, along with fibonacci extension levels of the recent downswing from 1.1514 to 1.1434 levels respectively. Looking at the fibonacci convergence and price support, high probability remains for a drop until 1.1400. But before that, a corrective pullback towards 1.1470/80 is quite possible to complete an up gartley structure. From trading point of view, an aggressive way would be to short sell around 1.1470/80, against yesterdays high. Only if EURUSD continues to drop below 1.1337 levels, the outlook might change to bearish,
Trading plan:
Aggressive setup is to sell around 1.1470/80 levels again, stop @ 1,1530, target @ 1.1400
Conservative traders please look to remain flat for now and buy lower.
Good luck!
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