Technical outlook:
EURUSD is taking its own time to unfold much awaited counter trend rally towards 1.2200/30 levels. Though it is not a certainty that prices could reach 1.2200/30 zone, probability does remain high for the same. The single currency pair is seen to be trading around 1.2108 levels at this point in writing and is expected to push higher through 1.2200, before resuming lower again.
Immediate resistance is at 1.2190, followed by 1.2350; while intermediary support comes in around 1.1950 levels respectively. After having given away nearly 400 pips since 1.2350 highs, EURUSD is seen to be working on the same boundary to hit fibonacci 0.618 resistance around 1.2200 mark. Bears might want to come back strong around that zone if prices manage to push through.
Thereafter, the next ear leg is expected to push prices through 1.1600 lows over the next several weeks. Having said that, please note that potential remains for a much deeper correction towards 1.1200/1.1300 levels in the next several months.
Trading plan:
Remain short, add more @ 1.2200/30, stop @ 1.2450, target is 1.1600 and lower.
Good luck!
