Technical outlook:
The EUR/USD has been dropping from 1.2500/600 levels, completing an impulse, 5 waves at 1.1300 levels earlier. Furthermore, the price has rallied through 1.1820/30 levels into 3 waves labelled as (A), around the fibonacci 0.382 resistance of the previous drop. The subsequent drop from 1.1830 until now has been transformed into 3 waves, thus it can be (B) depicted on the daily chart view here. Kindly note that 1.1300 remains as a critical support level for bulls to stay in control and unfold Wave (C) higher towards at least 1.1850 levels in the next few weeks time. A break below 1.1300 levels would delay matters further and could continue dropping lower or produce an expanded flat.
Trade recommendations:
Aggressive traders can initiate long positions against 1.1300 levels while conservative traders should stay aside for now.
Good luck!
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