Technical outlook:
A 4H chart view has been displayed for EUR/USD to have a larger wave count and medium-term outlook. Yesterday the EUR/USD pair eventually worked through its critical initial resistance at 1.1420 levels yesterday in line with what had been discussed here for several trading sessions. Aggressive traders who went long can now take profits at current market price 1.1420/30 levels if not done yet. The wave counts can be depicted as wave 1 of a higher degree being ready at this point in writing. An ideal scenario from here would be a drop lower towards at least 1.1340 levels, which is the fibonacci 0.382 retracement levels as displayed here. Please note that prices may continue to correct towards 1.1280 levels, which is the fibonacci 0.618 support as seen above. After working out wave 2 between 1.1280/1.1340 levels, we can expect EUR/USD to rally further towards 1.1700/1.1800 levels as wave 3 unfolds. The 1.1175 level is now seen as strong support and prices are expected to remain higher.
Trading plan:
Buy on dips towards 1.1280/1.1340 levels, stop below 1.1175 and target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com