Technical outlook:
We have presented a potential wave count for EUR/USD on the Daily time frame. The chart suggests that EUR/USD might have bottomed at 1.0920 levels yesterday and it could be on its way to 1.1400/1.1500 in the next several weeks to come. The single currency might have completed an ending diagonal and also hit a fibonacci extension at 1.0925 levels as highlighted above. The drop from 1.2555 levels looks to be now complete with a 5-3-5 structure labelled as A-B-C here (wave A not seen). Furthermore, a bullish pin bar candlestick pattern has also appeared, suggesting a potential trend change going forward. The above scenario would be confirmed once prices rally further and break above 1.1250 levels which is wave iv of the diagonal. An alternate view could be that EUR/USD might face resistance around 1.1000 and continue dropping lower. A break below 1.0925 suggests further weakness into 1.0820 levels.
Trading plan:
Aggressive traders remain long against 1.0920.
Good luck!
