Technical outlook:
The EUR/USD pair is almost ready to drop lower sharply into wave c of a potential a-b-c drop that began from 1.1412 levels earlier. We have again presented the hourly chart here to label the counter-trend drop towards 1.1270 levels. After forming highs at 1.1412 levels earlier, the single currency pair had dropped lower towards 1.1344 levels before drifting sideways into a potential triangle formation. With prices being out of the triangle now, it seems that wave b might be in place at 1.1376 levels. If the above structure is correct, we should see a wave c drop lower towards at least 1.1270 levels which is also the Fibonacci 0.618 support of the previous rally between 1.1180 through 1.1412 levels respectively. As an alternate probability, a push above 1.1412 would mean that bulls still remain in control and looking towards fresh highs. Major support remains at 1.1180 levels and prices need to drop below that to confirm a major bearish reversal. For now, expect a counter-trend drop towards 1.1270 levels.
Trading plan:
Remain short from 1.1380/1.1400 levels earlier, stop above 1.1412, target is 1.1270
Good luck!
