Technical outlook:
The EUR/USD pair continues to drift lower as expected with 1.1043 as an interim low. We have shown the 4H chart view with the recent boundary that is being worked upon, with Fibonacci resistances placed across. As seen here, the resistance starts from 1.1088 and spreads through 1.1140 levels. Immediate price resistance is now seen at 1.1165 and fresh lows can be expected until prices stay below that. Also note that the resistance trend line is being meticulously followed with the latest bearish bounce at 1.1165 levels. Any push beyond the resistance trend line would also be encouraging to bulls. Most traders might have booked profits on short positions taken earlier and if not, then it is advisable to take profit from short positions and remain flat. The next potential short entry could be seen towards 1.1120 levels which is converging with resistance trend line and Fibonacci 0.618 as well. The euro is expected to print lows below 1.1020 in the near term before reversing higher again.
Trading plan:
Take profit from short positions taken earlier and remain flat. Look to sell around 1.1120 going forward.
Good luck!
