Technical outlook:
EURUSD raised through 1.2150 mark yesterday before pulling back. Potential still remains for a push through 1.2155 levels, before reversing lower towards 1.2050 and 1.1986 levels respectively. We might witness some sideways price action for the next few hours as traders await the Fed interest rate decision during the New York Session.
EURUSD is seen to be trading around 1.2128 levels at this point in writing and is expected to push through 1.2155 mark before facing stiff resistance and turning lower again. Immediate resistance stands at 1.2218, followed by 1.2266 and higher; while support comes in around 1.1986 levels respectively. A drop below 1.1986 would be seen as constructive for bears, going forward.
EURUSD bears are expected to remain in control until prices stay below 1.2266 levels for now. As discussed earlier, the minimum expectations could be towards 1.1300 mark and up to 1.0636 levels in the next several weeks. We shall review the structure again when prices reach 1.1300 levels going forward.
Trading plan:
Remain short, stop @ 1.2350 and target @ 1.1300
Good luck!
