Technical outlook:

After all the buzz that EURUSD was set to begin a new trend higher, the dust is now settled with keeping technical discussions intact. The pair reversed lower from a dropping trend line last week. Traders can now bring their stop losses lower to 1.1340 or at breakeven (1.1320/25). We have presented the 4-hour chart view here to focus on the recent wave counts. Fibonacci resistance levels are displayed here which could come into play during intraday rallies, so please keep a note on them. Strong resistance is seen at 1.1290 levels, which is the Fibonacci 0.618 resistance and the past support turned resistance as well. Any intraday rallies should remain well capped below the 1.1300 mark going forward. Looking at the broader wave picture, a potential ending diagonal could be into its last wave 5, that begun from 1.1348 levels last week. In this case, a zigzag structure should be on its way lower towards 1.0800 levels, before a meaningful retracement could begin. We maintain the selling on rallies stance for now.

Trading plan:

Remain short from 1.1320 levels, stop to 1.1340, target is open.

Good luck!