Technical outlook:
EUR/USD managed to push through 1.2176 highs yesterday before pulling back. The EUR/USD pair is seen to be trading around 1.2148 at this point in writing and might push through one more high towards 1.2180 levels, before finding resistance again. Immediate resistance is seen through 1.2177/80, while support comes in around the 1.2050/60 levels respectively. A push below 1.2060 will confirm that bears are back in control and that a meaningful top might be in place. Notably, bears might be inclined to push lower to the 1.1200 level at least over the next few weeks. Furthermore, it is the Fibonacci 0.618 retracement of the entire rally between the 1.0636 and 1.2177 levels. Hence, a high probability remains for a bullish reversal if EUR/USD manages to reach the 1.1200 level. A break below 1.1600 confirms a major reversal to 1.1200 and beyond.
Trading plan:
Remain short, stop above 1.2300, target below 1.1200
God luck!
