EUR/USD has recovered very strongly late in the session and overnight to strong resistance at 1.1230/35. We wrote: Sell here, stop 1.1265, but we cannot rule out a break higher today, so be ready to stop out of shorts and reverse for a buy in to longs on a break above 1.1260 to target 1.1291/94 and perhaps as far as strong resistance at 1.1320/25 for profit taking. Sell here, stop 1.1350. Target 1 at 1.1295, T2 at 1.1270.
First support at 1.1205/00 could hold the downside, but this is tricky, as we have good support again at 1.1180. Buy in this 25 pip area, stop 1.1160. Target 1 at 1.1235, T2 at 1.1265. Be ready to sell a break below 1.1150, however, to target 1.1125/20, perhaps as far as a retest of 1.1090/86. Be ready to sell a break below here, if not already short, to target 1.1040/35. Further losses risks a slide as far as 1.0980.