Technical outlook:
EURUSD had dropped to 1.1882 levels yesterday before pulling back as bulls prepare to enter the final wave within the corrective rally. They might be preparing to push towards 1.2080/85 levels, and FOMC today might prove to be the trigger. Ideally prices should stay above 1.1835 lows to keep the counter trend structure intact.
The single currency pair is seen to be trading comfortable above 1.1900 levels at this point in writing and bulls are expected to continue further towards 1.2080/85 levels in the next few trading sessions. Immediate support is seen at 1.1835, while resistance is seen towards 1.2242, followed by 1.2350 levels respectively.
The overall structure since 1.2350 highs seem to be bearish as EURUSD has been carving lower highs and lower lows. The next resistance zone is also seen just below 1.2100 mark and EURO bears might be preparing to come back into action thereafter. Please note that downside targets remain towards 1.1600 levels at least in the next few weeks time.
Trading plan:
Remain short, stop @ 1.2350, target @ 1.1600 at least.
Good luck!
