Technical outlook:
EURUSD has pulled back from the recent consolidation range around 1.1795/1.1820 and managed to stage a rally towards 1.1875/77 while we were preparing to publish this update. This rally was quite anticipated as short-term traders were already prompted to cover short positions last week. EURO bulls might stay in control for a while but keep an eye at resistance as prices approach the back side of the trend line around 1.1880/1.1900 levels.
EURUSD is seen to be trading around 1.1877 levels at this point in writing and is expected to face short-term resistance around 1.1880 mark. A shallow pullback could be underway soon, back towards 1.1820/30 levels before the rally could resume. Immediate support is at 1.1750 while interim resistance comes in around 1.1975 levels respectively.
Also note that fibonacci 0.382 retracement of the drop between 1.2266 and 1.1751 is passing through 1.1940/50 levels, going forward. Expect a turn lower from there as bears prepare to be back in control as medium-term targets point towards 1.1300 levels as marked on the daily chart here.
Trading plan:
Short term: Remain long stop @ 1.1750, target @ 1.1975
Medium term: Remain short, add more @ 1,2050, target @ 1.1300
Good luck!
