Technical outlook:
EURUSD inched higher today towards 1.2117 during early hours of trade before finding resistance. The currency pair has almost reached its resistance trend line as well. It might be underway to produce a meaningful corrective drop at least towards 1.1860 levels before deciding further course of action. The daily chart seems to be producing a doji candle stick pattern as well indicating potential reversal soon.
EURUSD has been off the day's high and is seen to be trading around 1.2094 levels at this point in writing. Immediate price support is at 1.1993, while resistance is around 1.2250 levels respectively. A break below 1.1993 would also confirm that EURO is on its way for a deeper correction in the next few trading sessions.
The overall structure has turned bearish against 1.2350 highs since January 06, 2021. Bears are expected to remain in control until prices stay below 1.2350 mark going forward. For now, please watch out for a bearish reversal on a break below 1.1993 interim support.
Trading plan:
Remain short, stop @ 1.2350, target is below 1.1300
Good luck!
