Technical outlook:
EURUSD has resumed its counter-trend rally towards the 1.2140/50 zone as discussed yesterday. It dropped below the 1.1991 low yesterday before reversing sharply. it approached an intraday high around the 1.2090 mark. The pair is seen to be trading around the the1.2087 level at this point in writing. It is expected to turn lower anytime soon.
Immediate support is seen towards 1.1991, followed by 1.1950; while resistance is at 1.2242, followed by the 1.2350 level respectively. The pair is likely to drop between 1.2242 and 1.1991. The counter-trend rally is expected to reach the 1.2140/50 levels before turning lower again.
Downside potential remains towards the 1.1600 level if not lower. As highlighted here, the extensions are seen to be pointing towards the 1.1200/1.1300 levels as well before finding support again. Furthermore, the 1.1200/1.1300 zone is also seen as Fibonacci 0.618 retracement of the entire rally between the 1.0636 and 1.2350 levels respectively.
Trading plan:
Remain short with stop @ 1.2350, target @ 1.1600
Good luck!
