Technical outlook:
The outlook for the EUR/USD pair remains bearish against 1.1240 for now. Looking at the wave counts since 1.1240, 3 waves seem to be complete. A slight pullback/retracement into wave 4 of the same degree is possible (prices close to 1.1120) before dropping lower again. As an alternate count, a push above 1.1180 would indicate that an interim low is in place in the short-term and that prices could rally beyond 1.1240 before resuming its drop. For all short positions taken around 1.1150/60 last week, a short-term profit can be taken at current levels or stop can be moved to 1.1180 reducing risk. A safe trading strategy still remains selling on rallies until a short-term impulse rally is seen taking out immediate resistance at 1.1240. Bears are expected to remain in control at least for now.
Trading plan:
Remain short from 1.1150/60 and move risk to 1.1180. OR Book short term profits and sell again around 1.1120 with stop at 1.1180 and target below 1.1020
Good luck!
