Trading Plan for EUR/USD for May 16, 2018

Source: Forex Analysis
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Technical outlook:

A daily chart view is presented here with expansion of the recent wave structure. Since 1.2555 levels and consolidating within the wave (2) as shown here, EUR/USD has religiously followed a lower high, lower low structure. The pair is trading very near to a strong fibonacci support around 1.1790/1.1800 as seen here in the Red. A short-term interim bounce may be witnessed if those levels are reached or from nearby levels respectively. The overall trend looks nicely setup on the bearish side and selling on rallies should be considered as a safe trading strategy going forward. Looking into the wave structure, the pair is still carving out wave (3) of a higher degree and the next soft target after pullback should be 1.1700, followed by 1.1500 levels respectively.

Trading plan:

Remain short for now and also look to sell rallies through 1.2050/1.2100 levels targeting 1.1500

Fundamental outlook:

Watch out for ECB President Draghi’s speech in Frankfurt today at 08:00 AM EST.

Good luck!

The material has been provided by InstaForex Company – www.instaforex.com