Technical outlook:
EURUSD has dropped through 1.1840 levels today and has been drifting a bit sideways since then. The currency is just beginning to break below its trend line support from March 2021 and if bears are successful here, the next short term target could be 1.1700 and 1.1600 levels respectively. Alternately, if a pullback materializes from here, prices could first rally through 1.2000 levels before turning lower again.
Either way, EURUSD bears are poised to drag prices lower towards 1.1600 levels in the near term. The currency is seen to be trading close to 1.1850 levels at this point in writing and might produce a bullish bounce. Bullish divergences are seen on one hour time frames and a counter trend rally remains possible through 1.2000 handle.
Immediate support is seen around 1.1700 mark, while resistance is now seen around 1.1975 levels respectively. Also note that medium term targets remain around 1.1300, which is fibonacci 0.618 support of the entire rally between 1.0636 and 1.2350 levels respectively.
Trading plan:
Remain short, stop @ 1.2250, target @ 1.1300
Good luck!
