Technical outlook:
EURUSD struggles to hold its gains and once again is rejected at 1.1940/50 handle. The price action is a classic example of a bear market where selling on rallies always brings yields. We have changed the fibonacci retracement levels today and placed across the recent bearish drop between 1.2242 and 1.1835 levels and the currency is facing stiff resistance below the 0.382 retracement around 1.2000 handle.
EURUSD is seen to be trading near yesterday's low around 1.1880 levels and it remains to be seen if bears are able to break lower from here towards 1.1600 mark. Immediate support stays at 1.1835 mark, while resistance is seen at 1.2242, followed by 1.2350 levels respectively. Until 1.1835 remains intact, the counter trend rally towards 1.2040/50 is possible.
Looking at the overall wave structure, bears have managed to remain in control since 1.2350 highs in January 2021. The initial major support comes in around 1.1600 mark, also fibonacci 0.382 retracement of the previous rally between 1.0636 and 1.2350 respectively. It would be interesting to see if EURO dips from current levels or surprises quite a few traders with a flash rally through 1.2040/50 mark.
Trade plan:
Remain short stop @ 1.2350, target @ 1.1600
Good luck!
