Technical outlook:
EURUSD might have resumed its decline towards 1.1850/60 levels after printing highs at 1.2117 yesterday. The daily chart had produced a star doji candlestick patter as expected yesterday and it could follow through with a bearish Evening Star today. The rally from 1.1704 lows on March 31, 2021 has been sharp and has quickly raised close to fibonacci 0.786 retracement of recent swing.
EURUSD has pulled back off yesterday's highs and is seen to be trading around 1.2065 levels at this point in writing. It is expected to drop towards 1.1850/60 zone, which is fibonacci 0.618 of the recent rally between 1.1704 and 1.2117 levels respectively. A bullish turn there might warrant yet another rally close to 1.2250 levels in the next phase.
EURUSD has turned bearish since 1.2350 and is poised to decline towards 1.1300 levels at least in the next several weeks. Also note that the drop might extend towards 1.0636 levels, the March 2020 lows as well. For now, the short term target for EURUSD could be seen towards 1.1850/60 mark and we shall review the situation again.
Trading plan:
Remain short with stop @ 1.2350, target below 1.1300.
Good luck!
