Technical outlook:
EURUSD has either carved a meaningful bottom around 1.1765 levels yesterday, or is close to carving close to 1.1720/40 zone. At this point it is testing 1.1800 handle and might be preparing to produce a counter trend rally soon enough. Short term traders might be advised to remain flat for now as downside might be limited from here. We shall review again around 1.2050/70 levels to initiate fresh short positions.
EURUSD is seen to be trading around 1.1790 levels at this point in writing and might produce yet another low before pulling back higher again. Immediate resistance is at 1.1900, followed by 1.1975 mark, while support comes in around 1.1700 levels respectively. A break above 1.1900 would confirm that bulls are ready to produce the counter trend rally towards 1.2050/70 mark.
Please note that 1.2050/75 zone is also the fibonacci 0.618 retracement of recent drop between 1.2266 and 1.1765 levels respectively. If prices manage to reach there in the next few trading sessions, it should be considered as yet another opportunity to initiate fresh short positions. EURUSD medium term trend remains bearish until prices stay below 1.2266 levels.
Trading plan:
Remain flat for now, preparing to buy @ 1.1720/40 soon.
Good luck!
