Technical outlook:
Here you can see an hourly chart for the short-term trading setup. Please note that the EUR/USD pair has been consolidating since the last 2-3 trading sessions as depicted on the chart. It can be seen that the single currency is currently trading near the support zone of consolidation at the 1.1386 levels. In order to test the 1.1350 level, it is necessary to rally one more time to the resistance zone of the consolidation before dropping lower again. Please pay attention that 1.1350/60 is defined as support zone, since the Fibonacci 0.618 retracement of the previous rally between the level of 1.1270 and 1.1485 is passing through. Ideally, the EUR/USD pair is expected to bounce from the above levels and proceed through the 1.1620 levels as demonstrated on the chart. For this structure to hold true, the prices should stay above the 1.1270 support as highlighted here.
Trading plan:
Long positions should be opened from the 1.1350/60 levels with a stop order at 1.1270, and the target of at least 1.1620.
Good luck!
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