Technical outlook:
EURUSD dropped to fresh lows around 1.1772 levels yesterday during the New York session as expected. There might still be some room left for bears to hit lower, before finding some support. It is projected to find interim bottom around 1.1720/30 levels in the near term. Please note that a meaningful pullback rally can be expected from close to 1.1700 levels before the downtrend resumes.
EURUSD is seen to be trading close to 1.1790 levels at this point in writing and is expected to print one more low to complete the wave structure from 1.2266 highs. Immediate resistance still remains intact around 1.1975, while support comes in around 1.1700 levels respectively. The entire bearish drop from 1.2266 is expected to be retraced thereafter.
Looking at the wave structure since 1.2350 highs were registered in January 06, 2021, EURUSD bears might remain inclined to drag lower the price below 1.1300 at least, going forward. But in the near term, a pullback rally can be expected towards 1.2050 mark before bears resume lower again. Traders are advised to take some profits around 1.1720 levels.
Trading plan:
Remain short, stop @ 1.2250, target @ 1.1300
Good luck!
