EUR/USD rebounds towards 1.0900 levels, but outlook still bearish

EUR /USD pair has rebounded to trade around 1.0900 levels reversing course from earlier decline. Initially pair declined sharply after breaking support level at 1.0885 in the European session and was further hammered towards 1.0800 levels after US Nonfarm payroll printed better than expected reading at 292k.

• Further advance is expected to be limited as the pair faces strong resistance at 1.0947 and it is expected to decline towards 1.0800 and 1.0750 levels in the short term. Therefore it's good to sell this pair on rallies.
   
• To the upside, the strong resistance can be seen at 1.0947, a break above will take the pair towards next resistance level at 1.0980.
   
• To the downside immediate support can be seen at 1.0885 levels, a break below will open gates towards 1.0840 levels.
  
  Recommendation: Go short around 1.0930, targets 1.0850, 1.0800, SL 1.0960
  
  Resistance Levels
  
  R1: 1.0905 (Session high)
  
  R2: 1.0926 (61.8% Retracement level)
  
  R3: 1.0947 (Jan 4th high)
  
  Support Levels
  
  S1: 1.0885 (50% Retracement level)
  
  S2: 1.0840 (38.2% Retracement level)
  
  S3: 1.0800 (Psychological levels)