Technical outlook:
EURUSD accelerates its decline to 1.2154 levels today. It has dropped nearly 200 pips since registering a high at 1.2349 levels last week. The single currency pair is seen to be trading around 1.2165 levels at this point in writing and is expected to continue lower in the near term.
Immediate resistance now stands strong around 1.2349, while short term support is seen towards 1.2130 levels respectively. EURUSD bears are inclined to remain in control and push towards 1.1600 levels in the next several weeks. Please expect a pullback towards 1.2280 levels, before the decline resumes again. It could be seen as another opportunity to initiate fresh short positions or add more.
As discussed earlier, the over all bullish structure from 1.0636 lows in March 2020, seems to have completed at 1.2349 highs recently. The entire rally could be retraced to fibonacci 0.618 levels, around 1.1200/1300 going further.
Trading plan:
Remain short with stop above 1.2400, target below 1.1600.
Good luck!
