Technical outlook:
EURUSD might have carved a lower high at 1.2254 levels yesterday, just shy of 1.2266 recent swing highs. It is looking to reverse lower towards 1.1900 levels at least over the next few trading sessions. A break below 1.2133 will accelerate the drop and also confirm that bears are back in control. Looking for lower highs and lower lows from here on.
EURUSD is seen to be trading close to 1.2170 levels at this point in writing and is expected to drop lower further. Immediate resistance is seen at 1.2266, followed by 1.2350, while support comes in around 1.2133, followed by 1.1986 levels respectively. A break below 1.1986 would complete the first leg lower towards 1.1300 levels.
EURUSD carved a shooting star/pin bar candlestick pattern on the daily chart yesterday, indicating a potential bearish reversal ahead. Prices are following through at the moment but a break below 1.2133 will instill further confidence on the downside. Bears are looking determined to remain in control until prices stay below 1.2266 levels going forward.
Trading plan:
Remain short, stop @ 1.2350, target is @ 1.1300 at least.
Good luck!
