06.08.201906:42 Forex Analysis & Reviews: Trading plan for EUR/USD for August 06, 2019

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Technical outlook:

Today, the EUR/USD pair has managed to rally past the resistance trend line, hitting above the 1.1240 levels before retracing back. The immediate price resistance still remains intact at the levels of 1.1285, and till the prices remain below that mark, the outlook remains bearish. We have taken into account the entire drop from 1.1412 through 1.1020 as the recent border being worked upon. The Fibonacci 0.618 resistance is seen at the level of 1.1260 as depicted here. This will help the prices to reverse lower. We present two possible options of the wave development here. The first option implies that wave 1 and wave 2 are formed, while wave 3 is developing. Within the wave 3, we can see wave i and wave ii at a lower degree. In order for this option to remain relevant, the prices should stay below the 1.1285 levels. The second option includes the situation when an A-B-C wave is from 1.1412 through the 1.1020 levels as a part of the ending diagonal wave for wave (C) at a larger degree. A high probable direction is lower from here.

Trading plan:

Remain short and add further at the current price at the 1.1200/05 levels. Stop above 1.1285. The target is below 1.1020.

Good luck!

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