Technical outlook:

EURUSD has dropped below 1.2100 handle today after having rallied through 1.2218 levels over the last week. It looks most likely that bears are back in control and are determined to take out 1.2050 in the near term. EURUSD is pulling back for now and intraday resistance might be strong around 1.2120/30 levels, going forward.

EURUSD is seen to be trading around 1.2120 levels at this point in writing and is expected to drop towards 1.2050 either today or tomorrow. Immediate resistance is seen towards 1.2218, followed by 1.2266 and higher; while support comes in around 1.2050, followed by 1.1986 levels respectively. A break below 1.1986 will confirm further bearish potential, going forward.

EURUSD wave structure might be indicating that the currency might drop through 1.1300 levels at least or could extend towards 1.0636 levels in the next several weeks. Please note that it is critical for bears to break below 1.1986 lows to confirm a potential larger degree trend reversal ahead.

Trading plan:

Remain short, stop @ 1.2350, target is @ 1.1300

Good luck!