Technical outlook:
The EUR/USD pair set a rally last Friday as expected after bouncing back from 1.1115/20 levels. The aggressive long trades if they've been taken, should be now closed with profits and prepare to go short. The overall wave structure since printing highs at 1.1260 levels earlier, looks to be a sideways consolidation. The resistance has been decreasing since 1.1260 levels, while support has remained more or less constant around 1.1100/10 levels respectively. Please note that prices are seen to be reversing from the Fibonacci 0.618 resistance of recent downswing between 1.1220 and 1.1120 levels. If a bearish reversal here is confirmed, the next potential move could be lower, breaking 1.1100 interim support and pushing lower towards 1.0900 levels respectively. As an alternate scenario, only a definite push above 1.1260 levels would be considered as a bullish reversal.The risk remains just above 1.1220 or 1.1260 levels so kindly adjust your stops accordingly.
Trading plan:
Take profits on longs taken last Thursday. Now, go short with a stop at 1.1260 targeting below 1.1100
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com