Technical outlook:
EURUSD might have carved a meaningful top around 1.2350 levels yesterday. The single currency pair is seen to be trading around 1.2249 levels at this point in writing and could continue lower towards 1.2200/1.2150 in the immediate short term. The overall structure might be turning bearish from here and a break below 1.2170 would confirm the above. Immediate resistance is now fixed around 1.2350 while support comes in at 1.2150 levels respectively. The rally that had begun from 1.0636 lows in March 2020, might have finally terminated/completed at 1.2350 levels yesterday. If the above structure holds well, bears might be preparing for a major corrective decline towards 1.1300 levels, which is fibonacci 0.618 retracement of the entire rally. Furthermore, the potential target for next several weeks is towards 1.1600 levels. The daily chart is unfolding an engulfing bearish candlestick pattern and a close around current levels (1.2250/55) will confirm the same.
Trading plan:
Remain short, stop @ 1.2450, target @ 1.1600 and further.
Good luck!
