Technical outlook:
A 4H chart for EUR/USD has been presented here for short-term outlook. The pair has formed possible support for the short term at 1.1340 level. The subsequent action was followed by appearance of an engulfing bullish candlestick pattern, indicating a potential trend reversal. Should prices stay above Friday lows from here on, we expect a rally at least through the projected levels here, in the short term. Besides, note that 1.1550 is a major price resistance seen on the chart view depicted here. On the flip side, a drop below 1.1340 levels would nullify the bullish scenario and we might change the short term view to bearish. For now, bulls are expected to stage a rally through 1.1550 levels.
Trade recommendations:
Long EUR/USD now, stop below 1.1320 target 1.1550 at least.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com