Technical outlook:
The H4 chart presented here for EUR/USD is suggesting that the single currency pair might be close to completing its drop from the 1.1448 levels at a lower degree. In simple terms, one can expect a bottom formation around the 1.1185 levels soon before a pullback rally is formed. At this point in time, we would like to go with the long-term trend which is down against the 1.1448 levels. At the same time, aggressive traders might want to take advantage of the counter trend rally from the 1.1180/85 levels through the 1.1340/50 levels, projected above as retracement levels. Immediate price resistance is at the 1.1247 levels, and a breakout above that will confirm that there is an intermediary bottom and a counter trend rally is on its way. On the alternate side, if the prices consistently break below the 1.1175 levels, the decline towards the 1.0900 levels will continue. Both trading strategies are described below.
Trading plan:
Aggressive: Long again @ 1.1185/95, stop below 1.1175, target of 1.1340
Conservative: Remain flat and allow for a counter trend rally to initiate short positions.
Good luck!
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