Technical outlook and trade setups:
The EUR/USD pair had almost achieved its projected downside target at 1.1120 level yesterday before reversing sharply higher. The pair has managed to produce a counter trend rally through 1.1200 level till now and is expected to resume its down trend towards fresh lows. Please also note that the pair is stalling at a fibonacci 0.50% resistance level of the drop between 1.1283 and 1.1120 levels respectively. The wave structure indicates that a bearish reversal here is a strong probability that has potential to push lower towards fresh swing lows. It is hence recommended to initiate fresh short positions now, with risk at 1.1280 level. Immediate resistance is seen at 1.1213 level, while support is seen at 1.1120 level respectively.
Trading recommendations:
Initiate fresh short positions now, stop is at 1.1280, a target is open.
Good luck!
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