Technical outlook:
The 4H chart of EURUSD is displayed with the recent potential wave counts. The high at 1.1250 seems to be potential wave 4 termination. The subsequent drop lower could be progression of wave 5 lower. Still, potential remains for a lower low below 1.1020 as long as the prices remain below 1.1250 and broadly below 1.1412 going forward. Also note that immediate resistance trend line is being followed by price action, producing a bearish bounce while intersecting. Intraday rallies are expected to remain capped below 1.1160 while the euro looks to carve lower lows. Immediate price resistance remains at 1.1250, followed by 1.1285/90. The fibonacci ratios (not given here) are indicating a potential push lower towards 1.0850/1.0930 levels before reversing higher again. The short term trading strategy remains to sell on rallies with a protective stop above 1.1412.
Trading plan:
Remain short with stop at 1.1412, target is below 1.1020.
Good luck!
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