Technical outlook:
EURUSD bears might have carved a lower top/high around 1.2145 mark yesterday or preparing for another high around 1.2200/30 respectively. The single currency is seen to be trading around 1.2129 levels at this point in writing and is drifting sideways for now. It would be interesting to see if bulls are able to push through 1.2200/1.2230 handle, going forward.
Immediate resistance is at 1.2190, followed by 1.2350 while support comes in around 1.1950 levels respectively. Please note that EURO bulls have managed to reach up to fibonacci 0.786 retracement of the recent drop between 1.2190 and 1.1950 respectively. A bearish turn remains probable from here and break below 1.2040/50 will confirm that EURUSD is heading lower towards 1.1800 at least. On the flip side, if bulls manage to break above 1.2150 levels, high probability remains for a test of 1.2200/30 resistance, before turning lower again.
Either way, it is just a matter of time that EURUSD resumes lower again either from current levels or after testing 1.2200/30. The larger wave structure continues to be bearish until prices stay below 1.2350 mark, and potential remains for a push towards 1.1600 and 1.1200/300 levels before finding support again.
Trading plan:
Remain short, add more @ 1.2200/30, stop @ 1.2450, target @ 1.1600
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com