Technical outlook:
The EUR/USD pair rallied through 1.1175 levels on Friday, inviting traders to open short positions discussed earlier. Still probability remains for yet another push towards 1.1190, which is the upper boundary of resistance zone as well backside of the trend line and fibonacci 0.382 resistance of the entire drop between 1.1324 and 1.1111 levels respectively. In either case, a safe strategy could be to remain short and sell further on rallies through the above defined levels. The minimum downside target remains at 1.1020 levels as presented on the above chart. Resistance remains strong around 1.1324 levels and bulls would require to break above that to confirm that a meaningful bottom is in place for now. According to wave counts and fibonacci extensions, further downside remains a high probability going forward.
Trading plan:
Short from 1.1175 with risk at 1.1324, target 1.1020. Also add short positions around 1.1190 levels.
Good luck!
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