Technical outlook:

EURUSD pushed through 1.2272 highs last week and quite possibly carved a meaningful top there. The currency pair opened with gap down today and has managed to print intraday lows around 1.2130 mark with heightened levels of volatility. The single currency pair is seen to be trading around 1.2173 at this point in writing and could print yet another low towards 1.2100 levels today.

Immediate resistance now is fixed at 1.2272 mark, while short term support is seen towards 1.2125, followed by 1.2058 levels respectively. EURUSD bears might be preparing to push towards 1.2050/60 levels at least, in the near term. However, please note that potential remains for a drop towards 1.1600 levels.

As a meaningful high is registered last week, EURUSD bears would remain in control and continue pushing lower towards 1.1200/100 levels in the next several weeks. On the flip side, there might be one more high above 1.2272 if the currency manages to recover from 1.2060/70 levels.

Trading plan:

Remain short with stop above 1.2450 target below 1.1600.

Good luck!