Technical outlook and chart setups:
The EUR/USD pair dropped to the level of 1.1000 last week and this could still be the beginning of a larger correction unfolding, that could bring the pair to parity against the buck. The H4 chat shows that smaller waves are unfolding. It looks like the first leg down has been done. We expect a pullback towards at least the level of 1.1140/50. Hence recommendations are to remain flat and look for an opportunity to sell during an intraday rally through 1.1140/50 and 1.1300 respectively. Immediate support is seen at 1.0990 followed by 1.0850 and lower, while resistance is seen at 1.1140 followed by 1.1370 and higher.
Sell during intraday rallies.
The material has been provided by InstaForex Company – www.instaforex.com