Technical outlook:
The recent swings has been presented on the hourly chart for the EUR/USD pair. The low formed at the 1.1181/82 levels on April 02, 2019 should act as support for a few weeks at least. Initial resistance at the 1.1248 levels has been already taken out, which could be the potential Wave A (not labelled today). Yesterday's drop has been corrective and has found support at the convergence of the trend line and 0.618 Fibonacci of the Wave A. With such a structure, the most likely movement from here could be a rally higher towards at least the 1.1300 levels and up to 1.1340/50, respectively. Also note that the wave structure can be described as a potential inverted head and shoulders forming, with Head, LS, and RS at the level of 1.1181, 1.1210, and 1.1206, respectively. If the above structure remains relevant, we should see the prices staying above the 1.1181 levels and targeting higher towards the 1.1340/50 levels.
Trading plan:
Remain long against the 1.1181 levels with the target of 1.1300 and 1.1340/50
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com