Trading plan for EURUSD for July 01, 2019

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Technical outlook:

The EURUSD pair has finally broken down after a period of consolidation for several days as depicted above on the hourly chart view. We are expecting an a-b-c corrective drop towards 1.1250/70 levels or further lower. Please note that major support comes in at 1.1180 levels and a break below that would indicate a deeper correction, and we would have to change the view to a larger swing to anticipate the termination of the corrective wave. At this moment, we would respect the upswing between 1.1180 and 1.1412 levels, and expect a bullish turn around 1.1270 levels, which is Fibonacci 0.618 support. It is possible that wave b could have unfolded as a triangle instead of a flat and the recent drop could be termed as a breakout from the triangle consolidation. Those who had taken short positions from 1.1380/1.1400 levels earlier can book partial profits and also lower the risk to at least breakeven. Consider taking full profits around 1.1270 levels where a bullish bounce is possible.

Trading plan:

Remain short from 1.1380/1.1400, bring stop to breakeven and take partial profits, target is 1.1270.

Good luck!

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