Technical outlook:
EURUSD seems to have finally reversed lower breaking below 1.2133 levels yesterday. EURO bears came back strong from 1.2208 levels and took off more than 100 pips before finding some support. Please note that the reversal has come after EURUSD had tested the support turned resistance trend line around 1.2266 levels on May 25, 2021.
EURUSD is seen to be trading around 1.2112 at this point in writing and is expected to drop through 1.2050 mark in the near term. Immediate support is now seen at 1.2051, followed by 1.1986; while resistance comes in around 1.2254 levels respectively on the daily chart. Any intraday pullbacks towards 1.2160/70 should be used as opportunity to initiate short positions.
EURUSD might be setting up for a huge bearish reversal towards 1.1300 and 1.0636 lows of March 2020. The currency has to stay below 1.2266 and 1.2350 levels to keep the above bearish structure intact. Break below 1.1986 will instill further confidence to bears and accelerate further towards 1.1300 in the next few weeks.
Trading plan:
Remain short, stop @ 1.2350, target @ 1.1300 and 1.0636.
Good luck!
