Technical outlook:
EURUSD is beginning to slip lower towards 1.1986 in the short term and 1.1300 in the medium term. EURO bears seem to be back in control and dragging prices lower after having raised higher towards 1.2218 recently. A breakout below 1.2100 will accelerate further downside as bears are looking to stay in control from here.
EURUSD is seen to be trading around the 1.2130/35 levels at this point in writing and is expected to continue drifting lower. Immediate resistance is seen around 1.2254, followed by 1.2266 while support is seen towards 1.1986 respectively. Bears are poised to break below 1.1986 confirming a trend reversal ahead.
EURUSD had earlier rallied through 1.2350 highs in January 2021. Since then, bears have been in control and they have managed to carve at least one lower low and lower high until now. A break below 1.2100 would resume and accelerate trend lower towards at least 1.1300 going forward. Traders are advised to maintain short positions.
Trading plan:
Remain short for now, stop @ 1.2350, target @ 1.1300
Good luck!
