FX.co ★ Trading plan for EURUSD for July 13, 2021

Technical outlook:

EURUSD still remains vulnerable to drop below 1.1700 mark before producing a meaningful counter trend rally. As discussed yesterday, bears might be close to completing its bearish boundary that started from 1.2266 highs. A drop close to 1.1720/40 will complete the boundary for bulls to then produce a counter trend rally.

EURUSD is still drifting sideways and is seen to be trading close to 1.1860 levels at this point in writing. Immediate resistance remains fixed around 1.1975 mark, while support is seen at 1.1700 levels respectively. High probability remains for bears to resume lower again from close to 1.1900 zone. Selling on rallies remains a safe trading strategy.

EURUSD trend remains down until prices stay below 1.2266 levels, which is interim resistance and lower high after 1.2350 mark. We cannot rule out the possibility of a corrective rally through 1.2030 levels though. A break above 1.1975 will confirm that the counter trend rally is underway and EURUSD will hit 1.1930/1.2030 zone before turning lower again.

Trading plan:

Remain short, stop @ 1.2266, target @ 1.1300

Good luck!