Technical outlook:
EURUSD continues its decline and prints yet another low at 1.1812 today, leaving very less margin for a pullback rally. Believe it or not, EURO is trading close to its fibonacci 0.382 support around 1.1796 mark and a sharp pullback could resume soon. On the flip side, if the drop extends below 1.1795, bears might remain poised to drag further towards 1.1700 as well.
The single currency pair is trading close to the day's lows around 1.1825 levels at this point in writing and could find interim support around 1.1800 levels, and produce a pullback rally. Immediate resistance is fixed around 1.2242 mark, while support comes in just below 1.1800 levels respectively. A push above 1.1850 could be encouraging to bulls and they might continue further towards 1.2040/50 at least.
With the overall trend reversing lower since 1.2350 highs, EUR remains vulnerable towards 1.1600 in the next few weeks. It would be interesting to see if bears drag further lows from current levels or bulls are able to manage a pullback rally towards 1.2000/40 before giving in to bears again. The currency is nicely placed to be sold on rallies for now.
Trading plan:
Remain short, stop @ 1.2250, target @ 1.1600
Good luck!
