The 4H chart presented here for the EUR/USD pair might suggest that the single currency pair is not yet ready to drop lower. As labelled here, the EUR/USD pair might be looking to produce a 5 waves rally and thus complete an impulse. The projected target for the wave v should be very close to the 1.1420 levels and if the resistance is taken out, it could be a huge boost for the EUR bulls. Looking into the objectivity of the above structure to remain valid, the prices should ideally stay above the 1.1240/45 levels and if it does, we can expect another high at the above levels before a corrective drop resumes. An aggressive trading strategy is long with a higher target, while conservatives could remain aside for a while. On the other hand, a drop below the 1.1240 levels would confirm that EUR/USD is looking to go lower for now before the rally resumes. Clearly, a higher probability remains for a push towards the 1.1420 levels.
Aggressive traders may want to long now, stop at 1.1240, target of 1.1420
Conservative traders, please remain flat for now.
Good luck!The material has been provided by InstaForex Company - www.instaforex.com