Technical outlook:
EUR/USD climbed to print a high at 1.1184 levels yesterday, before puling back lower. It has taken out 2 resistances at 1.1095 and 1.1172 as displayed on the 4H chart here. The most popular currency pair is seen to be trading around 1.1112 levels at this point in writing and could print yet another high at 1.1240 levels before producing a meaningful retracement. Please note that EUR/USD could drop until 1.0933 levels, which is the fibonacci 0.618 retracement of the rally between 1.0778 and 1.1184 respectively. Also note that the back side of the trend line resistance which could act as support going forward is also passing through 1.0930/50 zone. After nearly a 400-pips rally, the euro is expected to produce a meaningful retracement lower before resuming its rally towards 1.1500 and even higher levels, going forward. A retracement could provide yet another opportunity to initiate fresh long positions going forward.
Trading plan:
Remain long, one can take partial profits. Stop 1.0778, target is open.
Buy on dips towards 1.0930.
Good luck!
