Trading Plan for EUR/USD for July 30, 2018
The EUR/USD pair has managed to reach close to the 1.1700 mark now which is 0.618 retracement of the previous boundary. As projected on the above chart, the pair should face resistance here and reverse lower. Looking at the wave structure, EURUSD has carved out a potential triangle as wave (4) of the larger degree at 1.1750 levels earlier. If this wave count holds true, prices should ideally stay below 1.1750/85 levels going forward. Once the triangle line of support breaks down, i.e around 1.1600 levels, for now, the drop towards 1.1350 levels shall be confirmed and drop should accelerate. On the flip side, if prices breakout on the north side of potential triangle resistance, then the drop would be delayed and we might see a flat unfolding as wave (4).
Remain short for now, stop above 1.1780, the target is 1.1350.
Watch out for the EUR German Consumer Price Index today at 0800 AM EST