Technical outlook:
The EURUSD pair reversed from 1.1200/10 levels yesterday, as expected. Please make note that the single currency pair is still in the sell zone of resistance downtrend line presented here. Until the zones change, we shall remain bearish and look to the target below 1.1107 levels. Also note that yesterday's bearish reversal was quite important e.g. it came around the fibonacci 0.618 and trend line convergence as seen on the chart here. Intraday pullback rallies should remain well capped below 1.1215 levels, as potential high seems to be in place now. Immediate resistance is seen at 1.1260 and it is also the line in sand for bears to remain in control. Interim support remain at 1.1107 levels, which is expected to break down anytime soon. Please, be sure that the short term trend line displayed here was broken earlier, and the backside could provide the necessary support to continue rally. Hence, we shall reconsider the position around 1.1140 levels, which is the backside of trend line, highlighted with an arrow here.
Trading plan:
Remain short for now with stop at 1.1260 and target 1.0900.
Good luck!
