Technical outlook:
EURUSD broke through the 1.2125 level before pulling back. The euro is seen to be trading around the 1.2117 level at this point in writing. It is expected to resume a downward movement from here soon. Resistance is around the 1.2125/35 zone, while support is seen around the 1.2040 level respectively. A break below 1.2040 would encourage bears and also confirm a meaningful top in place. The overall wave structure on daily chart looks complete from 1.0636 low earlier in March 2020. A bearish reversal here has got potential to break below the 1.1600 level. On the flip side, a break above 1.2125 would attempt a push through 1.2135/40 at least before finding resistance. Either way, upside potential remains limited from here on, watch out for a break below 1.2040 to confirm a reversal.
Trading plan:
Prepare to sell again.
Good luck!
