Technical outlook:
EURUSD has dropped to 1.1780 today after reversing from 1.1850 mark over the last week. The currency pair could find intermediate support around 1.1750-60 zone before bulls are back in control again. They are looking poised to push toward 1.2050 mark in the next few trading sessions. Also note that Fibonacci 0.618 retracement of the drop between 1.2266 and 1.1660 is seen passing through 1.2050 level.
EURUSD is in a counter-trend rally towards 1.2050 in the near term, before it turns lower towards 1.1300 levels. High probability remains for a bearish bounce if prices manage to reach 1.2050 mark, going forward. The backside of support turned resistance line is also passing through the 1.2050-1.2100 zone, which is bearish convergence.
The currency pair is trading around 1.1783-85 mark at this point in writing and is expected to drop further toward 1.1750-60 from here. Immediate price support is seen at 1.1750, followed by 1.1660 while resistance comes in around 1.1850 (interim), followed by 1.1900 levels respectively. A push through 1.1900 will encourage further rally.
Trading plan:
Potential rally towards 1.2050 against 1.1660.
Good luck!
