Technical outlook and chart setups:
The EUR/USD pair rallied through 1.1325 level last week before reversing sharply lower towards 1.1240 level as depicted on the hourly chart. The pair is trading at 1.1230 level at this moment after printing interim highs at 1.1268 level, looking to turn lower again. The wave structure indicates that the pair has dropped lower in 5 waves earlier from 1.1325 through 1.1200 levels. Furthermore, the rally from 1.1200 through 1.1268 levels has unfolded in 3 waves (a-b-c), which is corrective. A bearish reversal from the current levels remains highly probable, with minimum downside potential towards 1.1150 level going forward. It is hence recommended to remain short from current levels, with risk above 1.1350 levels. Immediate resistance is seen at 1.1325 level, while support is at 1.1190 level respectively.
Trading recommendations:
Remain short now, stop is above 1.1350 level, a target is at 1.1150 at least.
Good luck!
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