Technical outlook:

The 4H chart presented here for EUR/USD is looming with probabilities on both sides. We suggest the price could go in the common direction. The first scenario presented suggests that the previous rally between 1.1175 through 1.1448 was Wave 1 and the subsequent drop towards 1.1245 is Wave 2 as labelled here. In that case, Wave 3 higher should resume any moment, while prices remain above 1.1175 going forward. The other probable count could be bearish since the drop from 1.1148 levels can be now counted as 5 waves impulse as well (not labelled here to avoid overlap). If the latter scenario prevails, we could witness at least a pullback rally towards 1.1350/70 levels before the drop continues lower below 1.1175 levels. In either case, the immediate probability seems to be more inclined towards a rally, either a corrective or towards a new high. The bottom line is that prices should remain above 1.1175 for now.

Trading plan:

Aggressive traders remain long against 1.1175 levels. Conservative traders remain flat for now.

Good luck!