Technical outlook:
The EUR/USD pair had rallied through 1.1275/80 levels yesterday before reversing lower. The existing rally from 1.1181 is looking to be 3 waves i.e counter trend. The long positions held from 1.1185/1.1200 levels earlier could be taken off now or around 1.1285 levels. Looking at the wave structure, the drop from 1.1448 through 1.1181 levels could be Wave (1) and Wave (2) is underway which might terminate between 1.1285 and 1.1340/50 levels going forward. Please note that bears could remain in control until prices stay below 1.1448. Hence a safer trading strategy from here could be selling on rallies through 1.1340/50 levels towards the major trend. Aggressive counter trend rally taken earlier may be exited by taking profits around 50-60 pips. The underlying 0.382 to 0.618 fibonacci resistances would provide the required resistance for EUR/USD bears to regain control.
Trading plan:
Take profits on long positions taken earlier. Looking to sell around 1.1285 and 1.1340 levels going forward.
Good luck!
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