Technical outlook:
A 4H chart view has been presented for EUR/USD today, to have a medium-term wave structure that could run up to several weeks. As expected in the past few trading sessions, the EUR/USD pair has dropped lower towards 1.1300/1.1290 levels as a counter trend A-B-C as depicted here. Prices are finding support at the fibonacci 0.618 of the previous rally between 1.1235 and 1.1420 levels respectively. The overall wave structure is that of a 5 waves rally (impulse) between 1.1235 through 1.1420 levels labelled as (1). This is followed by a 3-wave corrective drop A-B-C labelled as (2). The next move should be another 5 waves rally towards 1.1530 and 1.1750 levels respectively. For this wave count to hold true, we should see prices staying above 1.1235 levels going forward. Immediate price support is seen at 1.1275, while resistance is at 1.1340 levels respectively.
Trading plan:
Remain long, with stop below 1.1235, target is 1.1530 and higher.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com