The EUR/USD pair dropped towards support at 1.1200 levels before finding some relief. It is seen to be trading at 1.1208/10 levels at this point in time and might be looking to rally. Please be aware that the recent drop from 1.1260 is corrective (3 waves), hence yet another high above the 1.1260 mark cannot be ruled out. Looking at the entire structure from 1.1111, the EUR/USD pair seems to be producing an A-B-C correction and right now Wave C could be unfolding as an ending diagonal. If the above projected structure holds, we could see a rally as the last leg of the diagonal structure unfolds. Besides, note that for the above structure to hold, prices should stay above 1.1175 levels and a drop lower would confirm that a meaningful top is in place. It would be safe trading strategy to sell EUR/USD into strength towards 1.1320 levels or allow prices to break 1.1175. Interim resistance is seen at 1.1260 levels while support is at 1.1175 respectively. Also note that a break above 1.1260 levels would trigger buying towards 1.1320 levels but the rally would be temporary.
Trading plan:
Conservative traders remain flat and look to sell towards 1.1280/1.1320 levels. or when 1.1175 support breaks.
Aggressive traders may hold long against 1.1170 targeting 1.1280/1.1320
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
The EUR/USD pair dropped towards support at 1.1200 levels before finding some relief. It is seen to be trading at 1.1208/10 levels at this point in time and might be looking to rally. Please be aware that the recent drop from 1.1260 is corrective (3 waves), hence yet another high above the 1.1260 mark cannot be ruled out. Looking at the entire structure from 1.1111, the EUR/USD pair seems to be producing an A-B-C correction and right now Wave C could be unfolding as an ending diagonal. If the above projected structure holds, we could see a rally as the last leg of the diagonal structure unfolds. Besides, note that for the above structure to hold, prices should stay above 1.1175 levels and a drop lower would confirm that a meaningful top is in place. It would be safe trading strategy to sell EUR/USD into strength towards 1.1320 levels or allow prices to break 1.1175. Interim resistance is seen at 1.1260 levels while support is at 1.1175 respectively. Also note that a break above 1.1260 levels would trigger buying towards 1.1320 levels but the rally would be temporary.
Trading plan:
Conservative traders remain flat and look to sell towards 1.1280/1.1320 levels. or when 1.1175 support breaks.
Aggressive traders may hold long against 1.1170 targeting 1.1280/1.1320
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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