Technical outlook:
EURUSD had reversed sharply from 1.1904 highs through 1.1800/10 levels, falling in line with expectations. The single currency pair is seen to be trading at around 1.1850 levels at this point in writing and might resume lower anytime soon. Immediate resistance is seen towards 1.1920/30, followed by 1.2010; while support is seen through 1.1800, followed by 1.1750 respectively. A drop below 1.1750 will confirm that bears are back in control and a meaningful top is in place already. If the above structure remains intact, EURUSD might produce a sharp decline towards 1.1600 and further. Bears might be inclined to push prices lower towards 1.1500 mark, which is fibonacci 0.382 retracement of the previous rally between 1.0636 and 1.2010 levels respectively. Also note that trend line support is seen to be passing through that zone as well. We shall review the probabilities around 1.1500 levels.
Trading plan:
Remain short, Stop @ 1.2010, target @ 1.1500 and lower.
Good luck!
