Technical outlook:
Once again we are presenting the daily chart view with the last wave (5) being highlighted here. More specifically, please pay attention to the last leg within wave (5). It is expected either to complete at 1.2550 levels earlier or to unfold as a potential diagonal structure, pushing the prices higher towards the 1.2650 levels before terminating. Bottom line, till the time prices stay above 1.2205 levels going forward, look for a potential high unfolding as a diagonal. On the flip side, a break below 1.2205 would more or less confirm that a meaningful top is already in place and that the trend might have already turned lower. Please watch out how the prices are reacting around the current levels to see if the 1.2205 levels get broken or not. According to the channel depicted here, there might be one more push required before major reversal.
Trading plan:
If 1.2205 breaks, please prepare to sell subsequent rallies..
Fundamental outlook:
EUR German Unemployment Change and Rate at 04:00 AM EST. EURO Zone Consumer Price Index around 05:00 AM EST. USD GDP numbers at 08:30 AM EST.
Good luck!
