Technical outlook:

The EUR/USD pair dropped slightly more than expected yesterday but managed to stay above 1.0920. The subsequent rally occurred in line with expectation. The rally between 1.0928 and 1.1080 yesterday could be marked as wave i, within Wave c or might have terminated the a-b-c corrective rally. In either cases we can expect a drop lower at least towards 1.1020 before the pair will follow a further trajectory. Please note that a corrective drop would provide yet another opportunity to initiate long positions. Immediate resistance still remains at 1.1165, followed by 1.1250 respectively. It would be too early to presume that EUR/USD is out of woods and only a 5 wave rally here would imply that a meaningful bottom is in place. My trading suggestion is to take profits on the longs initiated yesterday at 1.0950/60 levels and remain flat for a dip again.

Trading plan:

Take profits on long positions taken earlier and stay flat for now.

Good luck!