Technical outlook:
The EURUSD pair has managed to push through fibonacci 50% retracement/resistance of the recent drop between 1.1324 and 1.1111 levels respectively as presented on the chart here. Also note that the 61.8% extension of recent counter trend rally has also been hit. The likelihood remains for a bearish reversal from current levels or from 1.1240 levels which is fibonacci 0.618 resistance of the former drop. We shall continue to maintain our bearish bias for now, and until prices remain below 1.1324 levels going forward. Immediate support remains at 1.1111 levels while resistance is intact at 1.1324 levels respectively. We believe that in the next 1-2 days, the direction and trend for May 2019 could be decided with more bias towards lower levels. Please also note that the next resistance in line is the 1.1250 zone and if bulls manage to push higher, it might be a threat to 1.1324 levels ahead. At least for now, it could be considered to be a safe trading strategy to remain short and look to further sell higher.
Trading plan:
Short from 1.1175 and 1.1190 levels, stop at 1.1324 and target 1.1020.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com