Technical outlook:

The EURUSD seems to be preparing to push higher to 1.1260/65 levels before reversing lower. Yesterday's low towards 1.1160 levels and subsequent rally after that indicates an impulse at a lower degree. The current drop looks to be in 3 waves which is corrective. Hence, the short-term rally lasting for 1-2 days or a few hours remains a high probability. It is advisable to take profits on the shorts initiated last week around 1.1200/10 levels, and remain flat (conservative), or initiate fresh longs for a target of 1.1260 levels. Immediate price support remains at 1.1160 levels, while resistance is seen at 1.1285/90 levels respectively. Prices have remained sideways for a while now, and could possible terminate this counter trend rally by pushing higher one last time towards 1.1260 levels. Also note that 1.1260 is the Fibonacci 0.618 retracement of the previous drop between 1.1412 and 1.1020 levels respectively. That is why a bearish reaction remains high probability.

Trading plan:

Take short term profit on short positions taken last week. Aggressive traders go long with stop just below 1.1160, with target of 1.1260 levels. Conservative traders look to short at 1.1260 levels going forward.

Good luck!