Technical outlook:
EURUSD has produced a minor pullback rally back towards 1.1830/40 levels yesterday. This was anticipated and discussed earlier as it could be yet another opportunity to initiate fresh short positions. Short-term traders can still initiate fresh short positions now (1.1835/40) with risk above 1.1900 and potential downside towards 1.1720/30 levels respectively.
EURUSD is seen to be trading around 1.1835 levels at this point in writing and is expected to turn lower from here, dragging towards 1.1700/20 levels soon. Only a consistent break above 1.1900 levels would indicate that a meaningful bottom is in place at 1.1775 levels yesterday. Immediate resistance is seen at 1.1975 mark, while support comes in around 1.1700 levels respectively.
The entire structure since 1.2350 highs is expected to complete at least 3 waves and push lower towards 1.1300 in the next few weeks. Over the short term, we can expect a pullback rally towards 1.2050 levels after 1.1720/30 lows have been carved.
Trading plan:
Remain short for medium term, stop @ 1.2250, target @ 1.1300
Good luck!
