Technical outlook:
The EUR/USD pair has rallied past recent lows and hit above 1.1250 yesterday before pulling back. We present at least two potential outcomes today which can help to implement a trading strategy in the coming days. Please note that the price action has been tamed in the range between 1.1140 and 1.1260 levels since last several trading sessions. Immediate support is seen around 1.1170 levels and this should hold if bulls are wanting to stay in control. On the flip side, if prices fail to break above 1.1260 levels soon, bears may come back into play since EUR/USD is testing the resistance trend line close to 1.1220/30 levels at present. A conservative trading strategy is to take profits on long trades and remain flat for now, looking for further confirmation of highly probable trade direction. We need to respect the overall trend direction which is bearish for now as long as the price and the trend line resistance remain intact.
Trading plan:
Conservative traders take profit on long positions and remain flat.
Aggressive short players take short positions now @ 1.1225, stop above 1.1260 and target open.
If you would continue holding longs, revise stop to the breakeven or 1.1270 levels at least.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com