Technical outlook:
EURUSD rallied through 1.2250 levels today, which is the fibonacci 0.618 retracement of the recent swing between 1.2218 and 1.2100 respectively. Bears are expected to come back in control soon and drag lower towards 1.2050 and 1.1986 in the near term. A break below 1.1986 is needed to confirm that a meaningful top is in place around 1.2266 levels.
EURUSD is seen to be trading lower from the day's high around 1.2122 levels a this point in writing, and is expected to drag further towards 1.2050 a least in the next wave. Immediate resistance is seen at 1.2218, followed by 1.2266; while support comes in around 1.1986 and lower respectively. Bears would be poised to drag below 1.1300 levels going further.
EURUSD wave structure is taking shape of a potential trend reversal since 1.2350 highs registered in January 06, 2021. The recent swing drop between 1.2350 and 1.1700 was retraced towards 1.2266, the fibonacci 0.786 levels respectively. If the above structure holds well, EURUSD is poised to revese lower from here and drag below 1.1700 going forward.
Trading plan:
Remain short, stop @ 1.2350, target @ 1.1300
Good luck!
