FX.co ★ EURUSD trade recommendation and analysis for June 1, 2021.

EURUSD has bounced strongly above 1.22 and is trading around 1.2225. At current levels I prefer to open short positions or be at least neutral as I expect a major reversal in EURUSD to come soon and price to fall towards 1.2050.

Blue lines- Fibonacci retracement levels

EURUSD has retraced 78.6% of the recent downward move. This is the price level I prefer to open short positions looking for a move lower. Price has resistance at 1.2235 and I believe it is not very likely for price to break above this level. My stop for my short position would be at 1.2270 and my target at 1.2050 Short-term support is at 1.2180 and a break below this level will increase chances of my trade to end with profit and reaching my target.