Technical outlook:
The EURUSD pair retested the recent swing highs at the 1.1300 level yesterday before pulling back again. The pair might be still in favor of bears with the risk of the 1.1320 resistance being tested. In case 1.1320 is broken, the bias may shift towards bulls and buying on dips would be considered safe. Currently, we would hold short positions with a stop above the 1.1320 level, since the wave structure still indicates one more drop below 1.1107 before a notable rally can resume. Immediate price resistance stays at 1.1320, while support is at 1.1200. Please note that the Fibonacci 0.618 resistance of the entire range between 1.1450 and 1.1107 is seen close to the 1.1320 level. Therefore, a reaction could be expected around those levels. The event risk today might be providing the necessary trigger to define a direction for the rest of the month.
Trading plan:
Remain short for now, place stop order above the 1.1320 level, our target is below the 1.1107 level.
Good luck!
