The daily chart presented here clearly indicates that the EUR/USD might have finish its much anticipated counter trend rally round 1.0980/90 levels last week. The pair has hit the back side of the support trend line, which is acting as resistance now and has also dropped to 1.0800 levels yesterday before pulling back.
Looking into the overall trend which is down, it looks like a lower top is formed just ahead of the 1.1000 mark last week and prices could be heading south below 1.0400 levels and subsequently towards parity levels. Please note that bears are expected to regain control till prices stay below 1.0980/90 levels in the coming sessions as we discussed on different forex forums.
Immediate resistance is seen at 1.0980/90 levels (interim), followed by 1.1070 and higher while support is seen at 1.0700 levels and lower respectively. Intraday rallies can be expected from current levels but they should remain capped around 1.0940 levels.
1. Long now, stop at 1.0780, target 1.0940
2. Short at 1.0940, stop at 1.1010, target 1.0700 at least.