Technical outlook:

The EUR/USD pair rallied close to 1.1120 levels yesterday in line with the previously presented forecast . It might possibly consolidate in this zone (1.1060-1.1110), for a while before breaking lower to fresh levels below 1.1020. The above count looks the most probable at the moment but let us also be prepared for an alternate count which could indicate a potential rally towards 1.1260 levels before reversing lower again. Please note that price resistance stays at 1.1285/90 followed by 1.1412 respectively. Also note that this bearish move could be the last low required to complete the first wave lower from 1.2500 highs. Potential drop could see 1.0900/50 levels as the termination point of Wave A, within A-B-C drop that began from 1.2550 levels earlier. At the moment, we remain short with risk above 1.1285/90 levels.

Trading plan:

Remain short from 1.1150 levels earlier and also from 1.1120 levels yesterday as discussed . Stop at 1.1285, target at 1.0900/50 levels