Technical outlook:

The EUR/USD pair just made a marginal low yesterday at 1.1107 levels before pulling back almost 100 pips. Those aggressive traders who managed to stay on the long side must exit taking profits now, while those got stopped out must stay flat for now. Please notice the arrows presented here projecting the bullish scenario; 1.1260 resistance needs to be taken out to confirm that bulls are back into play. Taking note of the current rally, it has taken out immediate short term resistance at 1.1184 levels but that does not confirm a bullish reversal yet with strong conviction. Hence, we would take on a more conservative approach to trade the next few sessions. Please note that the bearish boundary which is between 1.1260 and 1.1107 levels. Prices have managed to reach 50% retracement for now. A safe direction to trade would be short now remaining around 1.1200 levels with a directional trade. At the same time keep in mind that 1.1140/50 is the short term support. Hence, we shall review our positions at that level.

Trading plan:

Aggressive traders who managed to hold long, can take profits now. Those who got stopped out remain flat.

Now go short at 1.1185/1.1200 levels, stop at 1.1270, target 1.1140 and below 1.1107.

Good luck!