Technical outlook:s
EURUSD rallied through 1.2200 mark yesterday before finding resistance and pulling back lower. The EUR currency has rallied to fibonacci 0.618 retracement of its recent drop between 1.2354 and 1.2100 levels respectively, which is not shown here today. High probability remains for a bearish turn from here as bears prepare to drag the price below 1.1900 levels in the near term.
EURUSD is seen to be trading at around 1.2174 levels at this point in time and it is expected to continue lower below 1.2100 mark shortly. Immediate resistance is seen towards 1.2254, followed by 1.2266; while support comes in around 1.1986 and lower respectively. Ideally, prices should stay below 1.2154 levels to keep the bearish structure intact.
EURUSD might be setting up to accelerate lower towards 1.1300 at least, in the next several weeks hence it is advisable to remain on the short side with risk around 1.2266 for now. Potential also remains for a drop towards March 2020 lows around 1.0636 levels and we shall bring up the scenario a bit later.
Trading plan:
Remain short, stop at 1.2350, target @ 1.1300
Good luck!