Technical outlook:
EURUSD has rallied through fresh highs today around 1.1908 levels before pulling back. As discussed yesterday, the currency is now facing strong resistance at the backside of support turned resistance trend line and bears might be back soon. It would be interesting to see ow prices react towards 1.1840/50 and 1.1810 levels, which are potential support zones.
EURUSD is seen to be trading around 1.1888/89 at this point in writing and is expected to continue lower towards 1.1840/50 at least. The recent boundary which could be retraced is between 1.1772 and 1.1908 levels respectively. Immediate resistance is now seen towards 1.1975 while support comes in around 1.1750 levels respectively.
The overall outlook still remains bearish towards 1.1300 over the medium term but a counter trend rally was very much possible in the short term as discussed last week. EURUSD counter trend might extend towards 1.1975 and 1.2050/70 before terminating and resuming its larger wave lower.
Trading plan:
Short term: Remain long against 1.1751, target is 1.1975 and 1.2050/70
Medium term: Remain short against 1.2266, add more @ 1.1975 and @ 1.2050/70, target is 1.1300.
Good luck!
