Technical outlook:
The EURUSD is likely to approach a minimum drop towards 1.1300 levels and up to 1.1250/70 levels. We have presented the hourly chart today highlighting the recent upswing between 1.1180 through 1.1412 levels respectively. A simple retracement of the above boundary should bring EURUSD lower towards the Fibonacci 0.618 support seen at 1.1270 levels. Looking at the structure of the counter trend drop, it seems like a 3-3-5 flat for now. Yesterday's rally had hit resistance at 1.1390 levels as it was discussed in the morning here. Aggressive traders who might have taken short positions between 1.1380/1.1400 levels could hold positions with a stop just above 1.1412 levels. Please note that the current drop is just an expected retracement and should unfold into 3 waves terminating at Fibonacci support of the previous upswing. Bulls are expected to be back in control once the counter-trend drop is complete. Only a break below 1.1180 levels could be seen as an immediate threat to the current bull run.
Trading plan:
Remain aggressively short fro 1.1380/1.1400 levels, stop above 1.1412 levels, target 1.1300 and 1.1270
Good luck!
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