EURUSD seems to have carved a potential top at 1.2245 levels yesterday. It has reversed from around the fibonacci 0.786 retracement of the entire drop between 1.2350 and 1.1704, almost closing on a bearish engulfing candlestick pattern. Today’s intraday rally up to 1.2204 looks just a minor correction as bears are expected to take control back.
EURUSD has dropped lower again towards 1.2183/85 at this point in writing and is expected to drop below 1.2159 levels soon. Immediate resistance stays around 1.2245, while interim support comes in around 1.2159 levels respectively. A break below 1.2159 will accelerate lower towards 1.2051 in the near term.
On the flip side, a break above 1.2245 will push towards 1.2265 levels before finding resistance again. Only a push above 1.2350 will change the bearish structure. Probabilities remain high for turn lower from here and resume the larger down trend by targeting below 1.1704 and 1.1300 levels respectively.
Trading plan:
Remain short, stop @ 1.2350, target is 1.1300
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Technical outlook:
EURUSD seems to have carved a potential top at 1.2245 levels yesterday. It has reversed from around the fibonacci 0.786 retracement of the entire drop between 1.2350 and 1.1704, almost closing on a bearish engulfing candlestick pattern. Today’s intraday rally up to 1.2204 looks just a minor correction as bears are expected to take control back.
EURUSD has dropped lower again towards 1.2183/85 at this point in writing and is expected to drop below 1.2159 levels soon. Immediate resistance stays around 1.2245, while interim support comes in around 1.2159 levels respectively. A break below 1.2159 will accelerate lower towards 1.2051 in the near term.
On the flip side, a break above 1.2245 will push towards 1.2265 levels before finding resistance again. Only a push above 1.2350 will change the bearish structure. Probabilities remain high for turn lower from here and resume the larger down trend by targeting below 1.1704 and 1.1300 levels respectively.
Trading plan:
Remain short, stop @ 1.2350, target is 1.1300
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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