Technical outlook and chart setups:
The EURUSD has now dropped further as expected and discussed yesterday. The pair has made lows at 1.1190 levels before pulling back towards 1.1225 only to find resistance there. It is seen to be trading at 1.1207 levels at this moment, and is expected to drop further towards 1.1180 and 1.1165 levels subsequently. The wave structure still indicates that the pair is on its way to produce a wave 5 impulse drop from 1.1279 levels and a push below 1.1190 would confirm the same. Once this is done, a counter trend rally should materialize towards 1.1250/60 levels before the pair reverses sharply. Ideally, prices should remain below 1.1280/90 levels to keep the bearish structure intact. It is hence recommended to remain short, with risk at 1.1290 levels, one can take partial profits though.. Immediate resistance is seen at 1.1283 levels, while support is seen at 1.1120 levels respectively.
Trading recommendations:
Remain short, stop at 1.1290, target is open. Please consider taking partial profits.
Good luck!
