Technical outlook:
EURUSD might be ready to drop lower towards 1.1720 from here. The currency pair reversed sharply from 1.1850 highs yesterday and printed 1.1796 lows before pulling back early today. Intraday potential remains to push through 1.1830 levels before hitting strong resistance as 1.1832 is fibonacci 0.618 retracement of the drop since yesterday.
High probability remains for a push below 1.1720 levels today or Monday before bulls are back in control again. EURUSD is seen to be trading around 1.1816 mark at this point in writing and is expected to resume lower soon. Immediate interim resistance is seen towards 1.1900, followed by 1.1975 while support comes in around 1.1700 levels respectively.
EURUSD wave structure from 1.2350 is indicative of an extended drop towards 1.1300 and further. But it might be straight from here and might require a meaningful retracement back towards 1.2050 levels. Traders are advised to sell on rallies through 1.2050 going forward.
Trading plan:
Remain short, stop @ 1.2250, target is @ 1.1300
Good luck!
