Technical outlook and chart setups:
The EUR/USD pair dropped to the level of 1.0818 yesterday before pulling back sharply. The pair seems to have completed its counter trend (3 waves down) from 1.1450. Please also note that the pair bounced off the fibonacci 0.681 support of the rally between 1.0550 and 1.1450 respectively. Furthermore, the past resistance turned support is also passing through the same region (1.0800). It is hence recommended to initiate long positions now with risk around 1.0700. The upside extensions could cross the level of 1.1450 in coming weeks. Immediate support is seen at 1.0650 followed by 1.0550 and lower. Resistance is seen at 1.1200 (interim) followed by 1.1450 and higher respectively.
Initiate long positions, stop at 1.0700, and a target above 1.1450.
The material has been provided by InstaForex Company – www.instaforex.com