Technical outlook:
EURUSD is consolidating in a potential triangle since printing highs around 1.2266 levels on May 25, 2021. A break below 1.2164 will confirm a bearish breakout; while a push above 1.2254 will be considered to be bullish. High probabilities remain for bears to come back and take control, dragging prices towards 1.1300 and 1.0600 levels going forward.
EURUSD is now seen to be trading around 1.2190 levels and is expected to drift sideways for a while before breaking below 1.2164. Immediate resistance stays at 1.2266, followed by 1.2350; while support comes in around 1.2051, 1.1986 and lower respectively. Bears are looking poised to take control back and accelerate lower.
EURUSD overall wave structure might have turned lower and the recent boundary being worked upon is between 1.2350 and 1.1700 mark respectively. Please note that prices have reached the fibonacci 0.786 retracement of the above boundary and also produced a bearish engulfing candlestick pattern. If the above holds well, EURUSD is poised to continue lower with 1.2266 intact.
Trading plan:
Remain short, stop @ 1.2350, target @ 1.1300 and lower
Good luck!
