Technical outlook:

The 4H chart presented here for the EUR/USD pair might suggest that the single currency pair is not yet ready to drop lower. As labelled here, the EUR/USD pair might be looking to produce a 5 waves rally and thus complete an impulse. The projected target for the wave v should be very close to the 1.1420 levels and if the resistance is taken out, it could be a huge boost for the EUR bulls. Looking into the objectivity of the above structure to remain valid, the prices should ideally stay above the 1.1240/45 levels and if it does, we can expect another high at the above levels before a corrective drop resumes. An aggressive trading strategy is long with a higher target, while conservatives could remain aside for a while. On the other hand, a drop below the 1.1240 levels would confirm that EUR/USD is looking to go lower for now before the rally resumes. Clearly, a higher probability remains for a push towards the 1.1420 levels.

Trading plan:

Aggressive traders may want to long now, stop at 1.1240, target of 1.1420

Conservative traders, please remain flat for now.

Good luck!