Technical outlook:
EURUSD had rallied through 1.1895 levels today before reversing lower sharply. EURO bears came back strong taking out almost 70 pips in a matter of couple hours. Possibility remains that EURUSD might have turned lower again, heading towards 1.1700, 1.1600 and 1.1300 levels going forward. Traders are advised to sell on any intraday rallies from here on.
EURUSD is see to be trading at the day's low around 1.1836 levels at this point in writing and is expected to continue drifting lower towards 1.1700 at least. A break below 1.1800 levels would accelerate further towards 1.1700 and 1.1600 in the near term. Immediate support is seen through 1.1800/10, while resistance now stands at 1.1970 levels respectively on the daily chart.
On the flip side, if bulls are able to hold above 1.1810, they might produce yet another rally towards 1.2030 levels. It would still be considered as a counter trend rally and should be considered as an opportunity to initiate fresh short positions. EURUSD continues to remain sell on rallies until prices stay below 1.2266 levels.
Trading plan:
Remain short, add more @ 1.2030, target @ 1.1600 and @ 1.1300
Good luck!
