Technical outlook:

The EUR/USD pair dropped below the 1.1200 handle yesterday towards 1.1800 as expected. It looks like the pair needs to print one last low to complete the trade cycle before it produces a meaningful retracement. Please note that 1.1348 levels remain a significant potential resistance and any intraday rallies are expected to be capped below that. We have presented the Fibonacci levels here and 1.1280/90 levels remain quite significant for the next bearish move. The past support turned resistance zone also around the same zone (1.1280/90) which could produce a bearish reversal. Those who took short positions earlier from the 1.1320 mark as suggested might want to book profits and stay flat, waiting for the next opportunity. Look out for intraday rallies towards 1.1280/90 levels to re-enter on the short side, bottom line is that prices should stay below 1.1348 levels for now, to keep the bearish structure intact.

Trading zone:

1. Take profits on the short positions taken from 1.1320 levels earlier.

2. Enter short again around 1.1280/90 levels, stop at 1.1350, target is below 1.1107.

Good luck!