Technical outlook:
The 4H chart view has been presented for EURUSD to project the short term direction. Prices have slowly drifted lower after Monday opening at 1.1158. The single currency pair is seen to be trading at 1.1084 levels at this moment, and might rally towards 1.1120 levels during the day. Looking into the overall wave structure, prices have been carving lower lows and lower highs since 1.1412 levels with the recent high at 1.1250 levels which stays as a potential resistance for now. The EURO should ideally stay below 1.1158 level and drift lower toward fresh intermediary lows below 1.1020. With the sentiments at extreme bearish levels, it is better to be caution towards taking fresh shorts around current price. It is a safe strategy to keep booking profits on short positions while prices drift below 1.1020 levels.
Trading plan:
Book profits on shorts taken from last week. Remain flat after that.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com