We have presented a Daily chart view here to have a bigger picture. Please note that EURUSD might be carving out a potential ending diagonal and could be into its last Wave 5, after printing highs last week at 1.1347 levels. An ending diagonal consists of 5 waves labeled as 1 through 5 and each wave within, sub-divides into 3 waves labeled as an a-b-c wave structure. Furthermore, also notice that EURO has stalled its rally and hit resistance trend line, passing through the highs at 1.1514 and 1.1448 levels respectively. Apart from the above, Wave 4 seems to have reached the fibonacci 0.618 resistance of Wave 3, as depicted here at 1.1320 levels. Taking all the above into consideration, it is better to remain short again with stop above 1.1350 levels, as Wave 5 unfolds lower towards 1.1025/50 levels going forward. If a meaningful bottom has been formed at 1.1107 levels earlier, the EURUSD pair could still drop lower towards 1.1190/1.1200 levels as a retracement. Either ways, a high probable count seems lower from here at least towards 1.1190 levels or a fresh low.
Trading plan:
Remain short or initiate fresh shorts @ 1.1300/20 stop above 1.1350, target at least 1.1200 levels.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Technical outlook:
We have presented a Daily chart view here to have a bigger picture. Please note that EURUSD might be carving out a potential ending diagonal and could be into its last Wave 5, after printing highs last week at 1.1347 levels. An ending diagonal consists of 5 waves labeled as 1 through 5 and each wave within, sub-divides into 3 waves labeled as an a-b-c wave structure. Furthermore, also notice that EURO has stalled its rally and hit resistance trend line, passing through the highs at 1.1514 and 1.1448 levels respectively. Apart from the above, Wave 4 seems to have reached the fibonacci 0.618 resistance of Wave 3, as depicted here at 1.1320 levels. Taking all the above into consideration, it is better to remain short again with stop above 1.1350 levels, as Wave 5 unfolds lower towards 1.1025/50 levels going forward. If a meaningful bottom has been formed at 1.1107 levels earlier, the EURUSD pair could still drop lower towards 1.1190/1.1200 levels as a retracement. Either ways, a high probable count seems lower from here at least towards 1.1190 levels or a fresh low.
Trading plan:
Remain short or initiate fresh shorts @ 1.1300/20 stop above 1.1350, target at least 1.1200 levels.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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