Technical outlook:
The EUR/USD pair took off 1.1170 yesterdays having made the previous recommendations on purchases irrelevant. The pair is trading around 1.1175 levels at this point. It is expected to hit another low below 1.1167 levels before pulling back. The directional view from this position could be bearish/sell on rise until prices stay below the 1.1260 mark. Intraday resistance is seen at 1.1225/30 levels and ideally, any counter trend or pullback should remain below 1.1225/30. Looking at the overall structure, bears could remain in control and hit new lows below 1.1111 levels respectively. Only a push above 1.1225 and subsequently a break above 1.1260 levels could undermine the current bearish outlook. A simple trading strategy could be to go short on a pullback towards 1.1200 levels and risk above 1.1260 levels with potential targets below 1.1111 levels in the future.
Trading plan:
Sell around 1.1200, stop above 1.1260, target below 1.1111 levels.
Good luck!
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