Technical outlook:
The EUR/USD pair continues to consolidate above 1.1200/10 levels for now and potential remains for a drop back into 1.1200 zone before rallying one last time towards at least 1.1280 levels before reversing sharply. Let us simplify the trade setup here: it is a safe trading strategy to sell into rallies towards 1.1280/1.1320 levels going forward, considering the fact that the recent wave that began from 1.1111 could still be incomplete and requires one more high above 1.1260 levels. Hence, conservative traders should stand aside and wait to short again around 1.1280 levels. Another way to view is the counter trend rally which is up and could provide long opportunities for aggressive traders. Another long opportunity could be seen around 1.1210/20 levels with risk below 1.1700 levels. Hence aggressive traders might want to take long positions there and take it towards 1.1280 levels, before reversing trades. Also note that the channel line for counter trend rally to terminate is seen around 1.1280/1.1300 levels respectively which is complementing the aggressive view explained above.
Trading plan:
Aggressive traders could buy again around 1.1210/20 levels, stop below 1.1170 and target 1.1280
Conservative traders remain flat for now and look to sell higher at 1.1280/1.1320 levels.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com