Technical outlook:

EURUSD might have completed its first wave lower from 1.2349 highs, around 1.2132 levels. It could be preparing for a push through 1.2270 mark to complete the counter trend, before reversing lower again. The single currency pair is seen to be trading around 1.2161 levels at this point in writing and is expected to continue higher through 1..2270 before resuming lower again.

Immediate resistance is seen through 1.2349 while interim support is just below 1.2130 levels respectively. Please also note that 1.2270 is fibonacci 0..618 retracement of the earlier drop between 1.2349 and 1.2130 levels and hence a bearish bounce can be expected if prices are able to reach there.

Looking at the overall wave structure, the rally that had begun from 1.0636 in March 2020, might be complete at 1.2349 and a corrective drop could be unfolding towards 1.1200 levels going forward. Also note that fibonacci 0.618 retracement of the entire rally between 1.0636 and 1.2349 is also seen through 1.1200/50 levels and hence a bullish bounce remains probable.

Trading plan:

Remain short for now, stop above 1.2400, target is 1.1200/50

Good luck!