Technical outlook:
EURUSD has carved a meaningful top around 1.2350 early last month and prices are most likely to remain lower. Counter trend rally still remains possible towards 1.2230/40 zone, which is fibonacci 0.618 retracement of the recent drop between 1.2350 and 1.2053 respectively(not shown here).
Immediate resistance remains fixed around 1.2350 mark, while intermediary support is at 1.2050 levels respectively. The short term charts indicate a potential rally to 1.2230/40 zone before bears are back in control and they resume lower towards 1.1600 levels in the next few weeks. Looking at the larger wave structure, the entire rally between 1.0636 lows in March 2020 through 1.2350 recent highs, seem to be complete.
Hence high probability remains for a meaningful corrective drop at least towards 1.1200/300 zone. Also note that 1.1200 is also lose to fibonacci 0.618 retracement of the entire rally as depicted on the chart here.
Trading plan:
Remain short, add more @ 1.2230/40, target is 1.1600 and further.
Good luck!
