Technical outlook:
EURUSD has retraced its recent drop between 1.2266 and 1.2133 levels, managing to reach up to 1.2240 mark today. It is not shown here, but prices have tested the fibonacci 0.786 retracement of the above drop. A bearish turn remains high probability here and if bears are back in control here, EURUSD might drop towards 1.1900 levels in the near term.
EURO had earlier reached up to 1.2266 levels, testing the backside of the support turned resistance trend line. Furthermore, the rally towards 1.2240 looks corrective and a turn here will bring back bears into play. It is seen to be trading around 1.2230 levels at this point in writing and is expected to turn lower from here.
Immediate resistance is seen at 1.2266 mark, followed by 1.2350; while support comes in around 1.2133, followed by 1.1986 levels respectively. Bottom line for bears to remain in control is that prices should stay below 1.2350 levels, going forward. A break below 1.2133 will confirm that trend has reversed lower.
Trading plan:
Remain short stop @ 1.2350, target is @ 1.1300
Good luck!
