Technical outlook:
The EUR/USD 4H chart displayed today is focused on the drop between 1.1448 and 1.1183 levels respectively. In the past few days, we have been discussing on the potential counter trend rally that began from 1.1183 last week. This counter trend rally might still be having some steam left towards 1.1350 levels, before giving in to bears again. If we look at the structure presented here, the larger boundary that is being worked upon seems to be between 1.1448 and 1.1183 levels respectively. Prices reversed from the 50% retracement around 1.1324 levels as seen here. At the moment, the EUR/USD pair is trading clearly into sell zone of the counter trend rally but potential remains towards a push higher towards 1.1350 levels which is fibonacci 0.618 resistance of previous drop. In this case, we could expect prices to trade above 1.1183 levels going forward by probably by tomorrow, it extends a rally towards 1.1350 levels respectively. On the flip side, a drop below 1.1183 levels would confirm that a meaningful top might be already in place at 1.1324 levels and that bears are on their way lower.
Trading plan:
Aggressive traders remain long against 1.1183 levels targeting 1.1285 and 1.1359
Good luck!
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