Technical outlook:
EURUSD rallies over 70 pips today after printing lows around 1.1770 mark. The recent intraday rally could be seen as a pullback and yet another opportunity to initiate short positions for near term targets around 1.1720/30 levels respectively. Bears are just about to complete a major bearish boundary between 1.2266 and 1.1700/20 to be retraced going forward.
EURUSD is seen to be trading around 1.1845 levels at this point in writing and is expected to print at least one more low around 1.1720/30 mark in the immediate future. Immediate support is seen at 1.1700 while resistance comes in around 1.1975 levels respectively. A break above 1.1975 is required to ease further bearish pressure over the near term.
EURUSD is poised to drop towards 1.1300 levels at least but expect it to drop into several lower lows and lower highs. A meaningful bearish boundary is just about to be produced between 1.2266 and 1.1720 levels. The currency pair might produce a counter trend rally thereafter, before reversing lower again. Long term traders may continue to hold short positions.
Trading plan:
Remain short with stop @ 1.2266 and target @ 1.1300 for long term.
Short term traders might book profits @ 1.1720/30.
Good luck!
