Technical outlook:
We present the medium-term outlook for EURUSD with 4H chart view here, The most probable direction for the next few trading sessions is towards the south side as indicated here. The EURUSD might have formed an intermediary top at 1.1347/48 levels last Friday and is set up for at least a corrective drop lower. As marked here, the extensions are pointing towards a drop to 1.1190/1.1200 levels, before the single currency pair chooses the further course of action. Thus, the direction of trade should remain lower in the coming sessions before it might reverse. Price support is also seen at 1.1200 levels, followed by 1.1120 respectively. Also note that there is Fibonacci convergence support at 1.1200 levels, with 0.618 retracement of the entire rally between 1.1107 through 1.1347 is also passing through. If a bullish reversal occurs around 1.1200 levels, we would then reverse positions accordingly.
Trading plan:
Remain short with a stop above 1.1350 levels, target at least 1.1200.
Good luck!
