EUR/USD Technical Analysis for October 27, 2016

Technical outlook and chart setups:

The EUR/USD pair finally rallied higher unfolding its much awaited counter trend. The pair has made interim highs at 1.0946 level before pulling back lower. It is seen to be trading at 1.0897 level for now and should be poised to push through 1.0992 level at least as depicted here. Please note that probability remains for a continued push higher in a counter trend rally this week. The pair is expected to rally and take out 1.1040 level to confirm that bulls are here to remain longer or it would be considered as wave 4 pullbacks. The probability for wave 4 terminations at 1.1040 level remains high at this moment according to wave counts discussed earlier. Looking at the wave structure, the pair looks to be in a corrective wave 4 rally which should ideally terminate around 1.1040 level. It is recommended to remain long now, with risk below 1.0850 levels. Immediate resistance is seen at 1.1040 level, while support is seen at 1.0850 level respectively.

Trading recommendations:
Remain long now, stop below 1.0850, target is 1.1040.

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