Technical outlook:
EURUSD dropped through 1.1847 lows over the last week after breaking below 1.2100 as expected. Bears are looking completely in control and also poised to push through 1.1300 in the next few weeks. At the moment, prices are testing its trend line support since March 2020 lows and a break lower would accelerate further. Intraday resistance is seen around 1.1925/50 zone.
EURUSD is trading over 50 pips higher around 1.1897 at this point in writing and is expected to reach up to 1.1925 before finding resistance again. A turn thereafter would target below 1.1700 levels and possibly accelerate through 1.1300 as well. Immediate resistance is now seen through 1.1950, while support comes in around 1.1700 respectively.
EURUSD needs to break below 1.1700 at least to complete a corrective flat. Alternatively, bears might extend the drop towards 1.0636 levels in case a new trend has resumed since 1.2350 highs. Either way, a minimum drop towards 1.1600 and 1.1300 zone cannot be ruled out in the next few weeks.
Trading plan:
Remain short, stop @ 1.2150, target @ 1.1300
Good luck!
