Technical outlook:
The EURUSD pair had bounced off 1.1180/90 levels as expected. We had also suggested to remain flat and wait for a rally to sell again. Keeping in mind the previous forecast, we present another perspective for probable trend moves in the coming sessions for EURUSD. First, please note that prices have broken above the intermediary resistance line and it stays clearly into the buy zone. After breaking higher towards 1.1348 levels, EURUSD dropped lower towards 1.1180 levels, testing the backside of the trend line which is support. Also note that the Fibonacci 0.618 support was also seen around 1.1200 levels, supporting price action on the north side. A strong support can be now seen to have established at 1.1107 levels, and till the time prices stay above that, we can expect the sequence of printing higher highs and higher lows to continue. Trading point of view, an aggressive setup would be to remain short with risk just above 1.1317 levels, targeting 1.1230/40 while a conservative setup would be to wait for prices to drop lower towards 1.1230/40 levels and buy. The mid term trend could be changing to bullish,
Trading plan:
1. Aggressive: Sell @ 1.1300/05, stop above 1.1317, target 1.1235
2. Conservative: Remain flat. Buy lower @ 1.1230/40, stop below 1.1180, target is open.
Good luck!
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