Technical outlook:
EURUSD has been drifting in a corrective range 1.2165 and 1.2195 respectively. It might attempt to re-test 1.2200 handle before finding resistance again. The currency is showing quite resilience and is not giving in to bears without testing around 1.2200 levels. If bulls are successful in pushing above 1.2254 levels going forward,
EURUSD is seen to be trading around 1.2191 levels at this point in writing and is expected to turn lower soon. Immediate resistance is seen at 1.2254, followed by 1.2266; while support comes in around 1.2050, followed by 1.1986 levels respectively. A drop below 1.2100 will accelerate towards 1.1986 levels.
EURUSD potential remains to drop through 1.1300 levels before finding some support again. Also note that 1.1300 is the fibonacci 0.618 retracement of the entire rally between 1.0636 and 1.2350 levels. A bullish bounce remains high probability if prices manage to drop until 1.1300 levels. Looking lower for now.
Trading plan:
Remain short for now, stop @ 1.2350, target is @ 1.1300
Good luck!
