Technical outlook:
EURUSD rallied through 1.2272 highs yesterday, signaling that a potential top formation could be near. The projected range for a high was between 1.2150 through 1.2300 as indicated on the daily chart here. The single currency pair is seen to be trading around 1.2244 levels at this point in writing and might be preparing to continue lower towards 1.2050 mark at least, in the next few trading sessions.
The rally that had begun from 1.0636 lows registered in March 2020, since to be complete or into its later stages of termination. Immediate support on the daily chart comes in around 1.2250/60, while resistance is at 1.2300 levels respectively. The bearish confirmation is still not seen on the daily chart but traders might remain watchful here.
The structure remains constructive for bears to resume lower towards 1.2050 levels at least in the next few trading sessions. Also note that potential remains for a break below 1.1600 support going further, which is fibonacci 0.382 retracement of the entire rally between 1.0636 and 1.2272 levels respectively.
Trading plan:
Aggressive traders might remain short from here, stop @ 1.2370, target is 1.1600
Good luck!
