Technical outlook:
EURUSD managed to pullback through 1.1970 levels yesterday only to find resistance yet again. The currency reversed sharply lower and dropped around 50 pips within next few hours. High probability remains for a bearish reversal towards 1.1600 levels in the near term, before a meaningful pullback could be produced.
EURUSD is seen to be trading around 1.1920 levels at this point in writing and it remains vulnerable for further lows at least through 1.1690 in the immediate future. A break below 1.1700 might accelerate further towards 1.1600 and 1.1300 in the next few weeks. Immediate resistance is now probably in place around 1.1970, followed by 1.2266 while support is at 1.1700 levels respectively.
EURUSD larger wave structure also indicates a potential bearish reversal already underway since 1.2350 highs earlier. A simple fibonacci extension of the earlier bearish boundary between 1.2350 and 1.1704 is pointing towards 1.1300 levels at least and up to 1.0636 mark as well. It is safe to hold short positions for now.
Trading plan:
Remain short, stop @ 1.2350, target @ 1.1300 and beyond.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com