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16.07.202009:14 Forex Analysis & Reviews: Trading plan for EUR/USD for July 16, 2020

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Technical outlook:

EUR/USD has managed to take out resistance defined around 1.1420 levels. The single currency pair is seen to be trading around 1.1403 levels at this point in writing and could be preparing to drop lower towards 1.1167 levels. Immediate resistance is seen towards the 1.1500 mark, while support is around 1.1250 respectively. Possibility remains for a push towards 1.1500 first before reversing lower, but please note that EUR/USD has been rallying recently as RSI is diverging. This bearish divergence on the daily chart might be indicating a potential bearish reversal sooner than expected. Even if the drop is corrective, EUR/USD can be seen around 1.1000 levels, which is fibonacci 0.618 of the previous rally,

Trading plan:

Aggressive: Short again @ 1.1400/10, stop @ 1.1550, target @ 1.1167 and further

Conservative: Short @ 1.1480/90, stop @ 1.1550, target @ 1.1167 and further.

Good luck!

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