Technical outlook:
The EUR/USD pair has managed to reach its resistance zone as defined between 1.1250/60 levels here. A high probable trade setup from here should be lower. Those who initiated short positions yesterday, keeping stops above 1.1220 levels could prepare to re-enter short positions today and the risk remains above next in line resistance at 1.1320 levels respectively. If bulls manage to break above 1.1260 levels consistently, we might re-consider our trading direction of selling on rallies. On the other side, if consolidation continues further, we could see a bearish reversal around these levels, dragging prices lower below 1.1100 levels going further. In the latter case, the overall wave structure remains bearish, and we can expect a break below 1.1100 levels soon. Even if this is not a consolidation, prices are expected to drop at least to 1.1180 levels, which is backside of the resistance trend line and which is support now.
Trading plan:
Remain short with a stop above 1.1324, target below 1.1100
Good luck!
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