Technical outlook:
EURUSD seems to be drifting sideways within a tight range of 1.1890 and 1.1980 levels since last several trading sessions. The trading range could last up to 3-4 days before breaking out, probability is towards the larger trend which is looking lower from here. Alternately, EURUSD could break out higher to meet resistance at 1.2050/80 zone, before turning lower again.
The single currency pair is trading around 1.1900 mark at this moment of writing. looking to bounce from support zone. If bulls are successful here, the next immediate target could be 1.1980, which is resistance. A break higher would then open doors for a test of 1.2080 level, which is also fibonacci 0.618 of the recent drop between 1.2113 and 1.1835 levels respectively.
The over wave structure has turned bearish since 1.2350 as bears are targeting towards 1.1600 levels at least. Also note that 1.1600 is past support and November 2020 low, along with fibonacci 0.382 retracement of the entire rally between 1.0636 and 1.2350 levels respectively. A break below 1.1600 will confirm a much deeper correction going forward.
Trading plan:
Remain short with stop @ 1.2350 and target @ 1.1600
Good luck!
