Technical outlook:
The EURUSD pair was trading sideways at the moment of writing around 1.1280 levels, looking to drift lower towards the major Fibonacci support levels discussed below. We have presented a 4H chart view to have a bigger picture in terms of the larger boundary between 1.1107 and 1.1412 levels respectively. The wave structure indicates that prices have rallied into 5 waves between 1.1107 and 1.1412 levels respectively. This could be labelled as a leading diagonal, indicating that EUR/USD is setting up for an extensive rally ahead. For the above structure to hold, prices should remain above 1.1107 levels going forward and find support at a Fibonacci level. Please note that 1.1250 is the 50% retracement of the entire rally discussed earlier and is also converging with the Fibonacci extensions 1.27% as displayed here. We shall stand aside and allow prices to bounce from either 1.1250 or 1.1224 levels to enter the bullish side.
Trading plan:
Looking to buy between 1.1224 and 1.1250 levels, the stop is set below 1.1107 and target is open.
Good luck!
