Technical outlook:

EURUSD had dropped through 1.1994 lows during the day before finding intermediate support. The single currency is seen to be trading around 1.2025 levels at this point in writing and is expected to push higher towards 1.2150 levels in the next 1-2 trading sessions. Immediate resistance is at 1.2242, followed by 1.2350; while interim support is not around 1.1994 levels respectively.

The short term wave structure is indicating a counter trend rally might have resumed towards 1.2150 mark before reversing lower again. The recent boundary which is being worked upon is between 1.2242 and 1.1994 levels respectively. EURO bears are expected to be back around 1.2150/60 zone and drag prices lower towards 1.1600 in the next several weeks.

Looking at the larger wave structure, EURUSD might have carved a meaningful top around 1.2350 levels. Bears have been successful in carving a series of lower lows and lower highs between 1.2350 and 1.1950 respectively. Furthermore, EURUSD has pulled back from 1.2242 levels, which is fibonacci 0.618 retracement of the above drop. Over the next few weeks, bears must would remain poised to print lower lows and lower highs towards 1.1600 levels.

Trading plan:

Remain short with stop @ 1.2400, target is @ 1.1600.

Good luck!