Technical Outlook and Chart Setups:
Let us again re-examine the wave structure using the 4H chart that the single currency is forming.
1. The recent downswing AB is between 1.4550 and below 1.40 levels.
2. The single currency pair has retraced back to 50% at 1.4250/80 levels and is pulling back.
3. Intermediary support levels are lined up at 1.4100, 1.4050 and just below 1.40 levels.
4. Immediate resistance is just below 1.4300 followed by 1.45 as seen here.
5. The single currency has taken out first resistance at 1.4250 levels last week.
Considering the above facts, it is quite possible that the 3 wave correction is underway at the moment and should end near the 1.4050/80 region atleast. If price bounces back from those levels, it is recommended to flip short positions and turn bullish; else continue holding short positions towards fresh lows.
Trade Recommendations:
Continue holding short positions with stop at 1.43 till atleast 1.4050/80 levels. Buy on a bounce.
Good Luck !
