Technical outlook:
The EUR/USD pair continues to drift sideways for 2 trading sessions in a row, having printed highs at 1.1188 levels last week. The most popular currency pair is seen to be trading around 1.1140 levels at this moment, looking to test 1.1210/20 levels which is also fibonacci 0.618 of the recent drop between 1.1282 through 1.1100 levels respectively. Looking at the wave structure, a simplified analysis would be to keep a watch on 1.1282 levels, which is immediate resistance for now. Until prices remain below that, we should expect further lows going forward. In the event that 1.1282.85 gives way to bulls, it could be seen as the first step towards a major correction higher. At this moment, we would be looking for opportunities to go short around the 1.1210/20 zone, if prices manage to reach there. Watch out for the hourly chart setups for further indications for a potential reversal. Besides, note that 1.1282/85 levels remain the line in sand for now.
Trading plan:
Remain long with stop below 1.1100 levels, target 1.1210/20 (Aggressive)
Short around 1.1210/20, against 1.1282 levels target lower (Conservative).
Good luck!
