Technical outlook:
The euro dropped to anticipated levels yesterday, in a corrective wave, as presented. Still looking at the counts for lower degree wave c, it remains a possibility that EUR/USD drop below 1.0987 will be followed by a further rally. The structure has been represented as an A-B-C correction higher for now, unless a change is witnessed. Immediate price resistance remains at 1.1165, followed by 1.1250 respectively and a break above that would probably indicate that a meaningful bottom has been in place. As for a trading strategy, it is a good idea to initiate longs at the current price of 1.1015 and also add further if prices manage to print a low below 1.0987 levels with risk at 1.0910 respectively. Prices have already bounced off the fibonacci 0.618 support, but chances of yet another shallow lows remain.
Trading plan:
Remain long from now and add further at 1.0980, stop below 1.0922, target at 1.1140 and 1.1180
Good luck!
