There has been no significant change in price movement within 24 hours. The EUR/USD pair is stalling ahead of its interim support at 1.1111 levels. This pair needs to come to its selling pressure. Hence, we are more inclined towards a contrarian trading direction in the short term. Until prices remain above 1.1111 levels, bulls are expected to remain in control and push prices higher towards 1.1320 levels before reversing lower again. Structurally, an A-B-C counter trend rally is what could be expected as presented here. A flat wave B could be in the making and once a low is in place ahead of 1.1111 levels, prices should rally to produce wave C, towards 1.1320 levels respectively. Also note, fibonacci price convergence is seen around the 1.1320 levels, and we can expect a bearish reaction around those levels. At the same time, we maintain that the above setup remains aggressive, hence conservative traders might want to remain flat.
Trading plan:
Remain long, stop at 1.1111, target is 1.1320.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Technical outlook;
There has been no significant change in price movement within 24 hours. The EUR/USD pair is stalling ahead of its interim support at 1.1111 levels. This pair needs to come to its selling pressure. Hence, we are more inclined towards a contrarian trading direction in the short term. Until prices remain above 1.1111 levels, bulls are expected to remain in control and push prices higher towards 1.1320 levels before reversing lower again. Structurally, an A-B-C counter trend rally is what could be expected as presented here. A flat wave B could be in the making and once a low is in place ahead of 1.1111 levels, prices should rally to produce wave C, towards 1.1320 levels respectively. Also note, fibonacci price convergence is seen around the 1.1320 levels, and we can expect a bearish reaction around those levels. At the same time, we maintain that the above setup remains aggressive, hence conservative traders might want to remain flat.
Trading plan:
Remain long, stop at 1.1111, target is 1.1320.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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