Technical outlook:
EUR/USD hovers around the 1.2300 levels for now as the currency faces resistance at 1.2300/10 zone. The single currency pair is seen to be trading around 1.2290/95 levels at this point of writing and is expected to drop lower anytime soon.
Immediate price resistance is seen around 1.2310/20, while support comes in at 1.2190, followed by 1.2130 levels respectively. A break below 1.2130 certainly confirms a meaningful top in place and signals that bears are back in control. EUR/USD had dropped through fresh yearly lows around 1.0636 levels before turning higher. Since then, bulls had remained in control, printing higher highs and higher lows through 1.2310 levels yesterday.
High probability remains for a bearish turn from these levels. On the flip side, if bulls continue pushing higher, the currency might reach the 1.2500 mark in the next few trading sessions. A drop below 1.2130 is crucial for bears to regain control.
Trading plan:
Remain short with stop around 1.2450 levels, target at 1.1600.
Good luck!
