Technical outlook:
The EUR/USD wave (5) of a larger degree has been displayed here with labeled wave counts. As discussed earlier and seen here, the pair has already advanced or sub divided into 4 waves within the wave (5). The last leg might have already been completed at the 1.2550/60 levels, or would terminate towards 1.2600 and higher levels respectively. A price drop below 1.2205 level, which is interim support and also the wave 4 termination point, would confirm that a meaningful top is already in place and that the pair should be principally heading south. A medium term target would be the wave (4) termination point at 1.1550 levels approximately. Immediate resistance is seen through the 1.2550/1.2650 levels while support is around the 1.2205 levels respectively.
Trading plan;
Look to sell on rallies through the 1.2550/1.2600 levels.
Fundamental outlook:
Watch out for German Consumer Price Index at 0800 AM EST followed by USD Durable Goods orders, Mr Powell's testimony at 08.30 AM EST
Good luck!
