Technical outlook:
EURUSD has been trading in a tight range between 1.1750/60 and 1.1790/1.1800 zone respectively. The single European currency still remains vulnerable for another low towards 1.1720/30 before turning higher towards 1.2050/70 levels. As highlighted on the daily chart here, a counter trend rally might soon materialize towards 1.2050/70 levels going forward.
EURUSD seems to be close to carving an interim low around 1.1720 levels and meaningful bearish boundary since 1.2266 highs. A pullback or counter trend rally towards 1.2050 would be considered as yet another opportunity to initiate fresh short positions. Immediate resistance is seen towards 1.1850, followed by 1.1900, 1,1975 and higher; while support comes around 1.1700 levels respectively.
EURUSD is potentially heading lower towards 1.1300 in the next few weeks and months. In the short term though, a counter trend rally towards fibonacci 0.618 retracement, of drop between 1.2266 and 1.1750 levels remains possible.
Trading plan:
Short term: Book profits on shorts taken @ 1.1720/30 and turn long towards @ 1.2075
Long term: Remain short and add more @ 1.2050/70, stop @ 1.2266, target @ 1.1300
Good luck!
