Technical outlook:
EURUSD had dropped through 1.2060 lows before pulling back. This was in line with expectations as discussed yesterday. The single currency pair is seen to be trading around 1.2106/08 levels at this point in writing and might continue higher to test 1.2177 highs in the next few trading sessions. Immediate resistance on the daily chart is seen around 1.2177, while support comes in at 1.2040 levels respectively. It is very close to a major bearish reversal but might test 1.2200 handle before giving in to bears. Major support is seen around 1.1600 levels and a break below that would confirm a bearish reversal. A minimum drop towards 1.1200 can be expected, which is also fibonacci 0.618 retracement of the entire previous rally between 1.0636 and 1.2177 levels respectively. It remains to be seen if bears return from here or after testing 1.2200 levels, going forward.
Trading plan:
Remain short, stop @ 1.2350, target below 1.1200
Good luck!
