Technical outlook:
EURUSD finally reversed yesterday by almost 80 pips from the days high at 1.2263 levels. The daily chart has produced an engulfing bearish candlestick pattern, indicating a potential bearish reversal ahead. We still need to see a break below 1.2150, which is just a matter of time now. Also note that EURUSD touched the backside of support turned resistance trend line.
EURUSD has also broken the rising wedge formation since 1.1986 levels, it is seen on the lower time frames. Furthermore, the bearish bounce has been produced around fibonacci 0.786 retracement of the entire drop between 1.2350 and 1.1704 levels respectively. It is now seen to be trading around 1.2205 levels and is expected to break below 1.2150/60 mark son.
Immediate price support is also seen through 1.2150/60 mark, while resistance stays at 1.2350 levels respectively. A break below 1.2150/60 would accelerate the drop and confirm that bears are back in control. EURUSD is looking to drop through 1.1300 and lower levels going forward.
Trading plan:
Remain short, stop @ 1.2350, target is open.
Good luck!
