Technical Outlook and Chart Setups:
The short-term line of support has been clearly broken now, and the single currency has been neatly carving out a sequence of lower lows and lower highs since recent swing highs. The downtrend line shown above is also intact and prices are currently testing the same level before resuming downswing further. Kindly note that 101.00 level is resistance now, and till the time prices are below that, we expect lower lows and lower highs. Furthermore, if we consider the rally from 94.00 to 104.00 as large upswing, the 0.618 retracement is passing through 97.80 level, and bears might be targetting the same, before giving up.
Trade Recommendations:
Remain short for now, move down stop to 101.50 levels. Target 97.80/98.00.
Good Luck!
