Technical outlook:
The EUR/USD pair rallied past 1.2475 levels before reversing sharply later during the day. If you have kept track of the proceedings this month, we had always presented an alternative scenario since 1.2240/50 levels indicating a probability of an interim lower high below 1.2555 levels before the pair could reverse lower again. The overall structure looks complete for a continued drift lower, bottom line prices should ideally stay below 1.2476 highs going forward. Please also note that the pair had pushed through the fibonacci 0.786 resistance zone before reversing lower, keeping the overall bearish tone intact. Interim support is seen through 1.2240/50 levels while resistance is at 1.2555 levels at this moment.
Trading plan:
Look for opportunities to sell through intraday rallies with risk above 1.2555 levels.
Fundamental outlook:
Watch out for USD GDP numbers to be out today at 0830 AM EST.
Good luck!
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