21.08.201904:23 Forex Analysis & Reviews: Trading plan for EURUSD for August 21, 2019

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Technical outlook:

The EUR/USD pair is consolidating between 1.1060 and 1.1120 as expected and discussed yesterday. The single currency may face resistance around 1.1120 zone and reverse lower towards 1.1020 soon. Only a push above 1.1170/80 from here would delay a downturn and indicate potential of another lower high around 1.1260. We have presented another possible wave count here that consists of an A-B-C drop between 1.1412 and 1.1020 levels as labelled here. This entire wave could be Wave 3 of a potential ending diagonal structure building since 1.1500 levels earlier. If the forecast holds, we should see yet another low below 1.1020, as Wave 5 of the proposed ending diagonal structure unfolds. Another possibility is that Wave 4 may terminate around 1.1260 and then prices turn lower again towards fresh lows. One can keep stops on the short positions taken earlier to 1.1080 levels and reduce risk. Immediate price resistance is seen at 1.1240 for now, while interim support is seen through 1.1020 levels respectively.

Trading plan:

Remain short as aggressive traders, move stop to 1.1180, and target towards 1.0900/50 levels respectively.

Good luck!

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