Technical outlook:
The EUR/USD pair has been consolidating for a few trading sessions in a row, after printing highs at 1.1260 levels on May 01, 2019. We had turned bullish around 1.1170 levels on May 02, 2019 anticipating a continued rally to 1.1320 levels. Please note that prices have moved in 3 waves from 1.1260, raising the probability of a contracting triangle being produced that could terminate around 1.1180 before EUR/USD rallies through 1.1260 levels. The potential upside target could be at least 1.1320 before bears come into play again. Please note that it is also the fibonacci 0.618 resistance of the drop between 1.1450 through 1.1111 levels as presented here. Keeping the risk factor into consideration, prices should remain above 1.1140 levels, for the above scenario to hold. Hence the risk remains at the triangle support at 1.1140 levels and if it breaks, that would be a confirmation of a top in place at 1.1260 levels and we shall be looking for lower levels again.
Trading plan:
Remain long from 1.1170 levels earlier, stop at 1.1140, target 1.1320 levels.
Good luck!
