Technical outlook:
EURUSD resumes its last leg of counter trend rally towards 1.2050 levels in the next few trading sessions. Please note that the proposed counter trend has been unfolding since 1.1835 lows registered in early March 2021. If the structure holds, EURUSD will stay above 1.1835 mark and bulls will be inclined to push through 1.2050/80 mark at least.
The single currency pair is seen to be trading around 1.1925 at this point in writing after having dropped to intraday lows around 1.1880 mark. The recent boundary being worked upon is between 1.2242 and 1.1835 levels respectively. Immediate resistance is also fixed at 1.2242, followed by 1.2350; while interim support comes in around 1.1835 levels.
The overall structure might have turned lower since 1.2350 highs registered on January 06, 2021. It is too early to project a trend reversal at this point but potential remains for a drop to 1.1600 at least. Further course of price action will help determine if long term trend is reversing/turning bearish, going forward. Watch out for a bearish reaction over 1.2050/80 zone in the next few trading sessions.
Trading plan:
Remain short stop @ 1.2350, target @ 1.1600
Good luck!
