Technical outlook:
The outlook for the EUR/USD pair remains bearish against 1.1240 for now. Looking at the wave counts since 1.1240, 3 waves seem to be complete. A slight pullback/retracement into wave 4 of the same degree is possible (prices close to 1.1120) before dropping lower again. As an alternate count, a push above 1.1180 would indicate that an interim low is in place in the short-term and that prices could rally beyond 1.1240 before resuming its drop. For all short positions taken around 1.1150/60 last week, a short-term profit can be taken at current levels or stop can be moved to 1.1180 reducing risk. A safe trading strategy still remains selling on rallies until a short-term impulse rally is seen taking out immediate resistance at 1.1240. Bears are expected to remain in control at least for now.
Trading plan:
Remain short from 1.1150/60 and move risk to 1.1180. OR Book short term profits and sell again around 1.1120 with stop at 1.1180 and target below 1.1020
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com