Technical outlook:
EURUSD has climbed through 1.2150 levels today before pulling back. It has almost tested the sloping resistance trend line since 1.2350 highs along with the backside of earlier support turned resistance trend line today. This could be seen as a strong resistance zone and bears might be inclined to take control back soon.
EURUSD is seen to be trading around 1.2118 levels at this point in writing and is expected to decline further. Immediate resistance is 1.2150 mark, followed by 1.2250 and higher; while support is seen around 1.2050 levels respectively. A break below 1.2050 will confirm that a meaningful lower top has been carved around 1.2150 today.
EURO bears would be back in control on a break below 1.2050 price support. High probability remains for a bearish reversal either today or tomorrow as the daily chart might produce a shooting star candlestick pattern. Please also note that the downside potential remains towards 1.1300 and 1.0636 over the next several weeks.
Trade plan:
Remain short, stop @ 1.2350, target is 1.1300.
Good luck!
