Technical outlook:
We have presented the 4H chart view for EUR/USD with an alternate probability. Please note that a major/critical point of the trend change would be the breakout of the price above the 1.1420 levels, which is immediate resistance as depicted here. Yesterday, we were looking for opportunities to go long on a dip, but the prices rallied from higher levels so that trading is void for now. A different perspective for trading would be to watch out for a bearish reaction around the 1.1310/20 levels, and turn lower with a price target below the 1.1180 levels. For this scenario to hold, the prices must stay below the 1.1420 levels and turn bearish around the Fibonacci 0.618 resistance zone seen at the 1.1325 levels. On the other side, a continued rally towards 1.1420 would be considered to be extremely bullish for EUR/USD and we would be looking for opportunities to go long on dips thereafter. Traders may remain flat and wait for a bearish turn at the 1.1320/25 levels or allow the price to break above the 1.1420 levels.
Trading plan:
Remain flat for now. Watch out for a bearish reaction around the 1.1325 levels to go short.
Good luck!
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