Technical outlook:
EURUSD has hit its fibonacci 0.618 extension today at 1.1700/02 today before pulling back sharply. Bears have managed to complete the cycle and might prepare to pullback in the next few trading days or weeks. We have presented the fibonacci retracement of the entire drop between 1.2350 through 1.1700 and potential remains for a pullback rally to materialize towards 1.2000 handle now.
EURUSD is seen to be trading around 1.1743 levels at this point in writing and might remain poised to push through 1.1810 mark as the immediate target. Please note that interim price resistance is also seen around 1.1810/20 while support comes in around 1.1700 levels respectively. If bulls are able to break above 1.1810/20, it could be the first sign of a potential pullback rally ahead.
After hitting fresh highs at 1.2350 mark on January 06, 2021, EURUSD has dropped almost 650 pips in the past 12 weeks time. Also note that EURO has found interim support at the fibonacci 0.382 support of the rally between 1.0636 and 1.2350 levels respectively. A pullback rally towards 1.2000 handle or 1.2100 levels can be expected to unfold in the next few weeks time.
Trading plan:
Book full profits on short positions. Remain long with stop @ 1.1590 target @ 1.2000 and 1.2100.
Good luck!
