Technical outlook:

The EUR/USD pair is still looking for a lower top to be carved out before the drop could accelerate. The pair seems to have either topped out around 1.2450 levels last week or it would push through 1.2470/80 levels before reversing lower. Please note that 1.2470/80 is also the fibonacci 0.786 resistance level of the entire drop between 1.2555 and 1.2150 levels respectively. On the other hand, please watch out for resistance around the 1.2380 levels, if prices push through intraday. A bearish reaction there should also be considered as an opportunity to initiate short positions. Interim resistance is seen at 1.2450 levels while support is through 1.2150 levels respectively. A safe trading strategy would be to look out for opportunities to sell higher.

Trading plan:

Remain short and also look to sell through 1.2370/80 levels. Risk above 1.2555.

Fundamental outlook:

There are no major events lined up for the day.

Good luck!