Technical outlook:
The EUR/USD pair rallied through 1.1188 levels yesterday before pulling back lower again. Please note that immediate resistance at 1.1183 levels was taken out. The recent pullback is stalling around 1.1155 levels, indicating a potential rally ahead. It may still be too early to project an upside movement at this moment but considering the flat corrective drop from 1.1260 levels earlier and the entire wave structure, we still maintain our projection towards 1.1320 levels. If predictions come true, prices must stay above 1.1111 levels, marked as interim low here. Take into account that a break above 1.1260 levels from here would trigger further buying towards 1.1320 levels, which is also the fibonacci 0.618 resistance of drop between 1.1450 and 1.1111 levels respectively. As an alternate, if prices break below 1.1111 levels, look for further downside below 1.0900 levels going further. Please watch out for prices to break above its immediate resistance line for bulls to remain in control.
Trading plan:
stop at 1.1111; target at 1.1320
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com