Technical outlook and chart setups:
The EURUSD pair has dropped lower to 1.0925 levels last week before pulling back sharply. The pair should be looking to rally towards 1.1225/30 levels, which is the Fibonacci 0.618 resistance of the drop between 1.1425 and 1.0925 levels. The wave structure indicates that the downtrend is set and the pair should be printing lower lows and lower highs targeting below 1.0400 levels, going forward. The current pullback rally towards 1.1228 levels should be taken as an opportunity to re-enter short positions. Immediate resistance is seen at 1.1230 levels, while support is at 1.0930 levels. Bears are expected to take back control anytime going forward; selling on rallies should remain a favored strategy.
Trading recommendations:
Remain flat for now, look to sell around 1.1230 levels.
Good luck!
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