The EURUSD pair bounced sharply on December 05, 2016 after forming fresh lows at 1.0500 levels as seen here on a short term time frame (15 minutes). As depicted here, please note that the rally from 1.0500 through 1.0795 levels unfolded into 3 waves. It is quite possible that wave 4 (correction) is now terminated at 1.0695 levels and if this wave structure holds well, the pair should see higher levels going forward. Besides it needs to be noted that the pair is in a counter-trend rally from 1.0500 levels and the same is expected to terminate around 1.0820 or 1.0900 levels respectively. At the moment, prices have bounced off the fibonacci 0.382 support of wave 3, which is a common correlation. Immediate support is seen at 1.0680 levels, while short-term resistance is seen at 1.0810/20 levels respectively.
Trading recommendations:
Remain long now, stop around 1.0650 levels and target is 1.0800 levels.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Technical outlook and chart setups:
The EURUSD pair bounced
sharply on December 05, 2016 after forming fresh lows at 1.0500 levels as seen
here on a short term time frame (15 minutes). As depicted here, please note that
the rally from 1.0500 through 1.0795 levels unfolded into 3 waves. It is quite
possible that wave 4 (correction) is now terminated at 1.0695 levels and if
this wave structure holds well, the pair should see higher levels going
forward. Besides it needs to be noted that the pair is in a counter-trend rally from 1.0500 levels and the same is expected to terminate around 1.0820 or
1.0900 levels respectively. At the moment, prices have bounced off the
fibonacci 0.382 support of wave 3, which is a common correlation. Immediate
support is seen at 1.0680 levels, while short-term resistance is seen at
1.0810/20 levels respectively.
Trading recommendations:
Remain long now, stop around
1.0650 levels and target is 1.0800 levels.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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