Technical outlook:
The recent drop in EURUSD has favored our bearish stance since the 1.1200 levels. We would still recommend to take profits on the short positions around 1.1140/50 levels. Please note that the 1.1140/50 zone might provide some support to bounce back, which could be a corrective movement or bullish reversal. We are keeping this bullish option open, since the prices have broken above the immediate resistance trend, as presented on the above chart. Also note that backside of the trend line acts as support now, which falls close to the 1.1140 levels as discussed earlier. We shall review the situation again around that time, but it is safe for the bears to consider taking some profits. Immediate resistance is intact at the 1.1260 levels, but it could be taken out if the bulls find support around the 1.1140 levels and reverse. The above level remains a critical line for bears to stay in control. If the prices fall to 1.1140 and below, they could get to the 1.0900 levels before reaching support.
Trading plan:
Hold short positions for now, with a stop loss order at 1.1260 and the short-term target of 1.1140/50.
Good luck!
