Technical outlook:
EURUSD continues to slide as bears are testing 1.0760 lows on Tuesday. The single currency pair is not out of woods yet and is trading below 1.0770 mark at this point in writing. At least, a push above 1.0920 is now require to release immediate downside pressure. Bulls remain determined to hold prices above 1.0759 mark keeping the structure intact.
EURUSD's continued slide to 1.0759 earlier has been accompanied by a strong bullish divergence on the daily RSI as shown here. The currency pair dropped to 1.0759 breaking 1.0806 mark but the RSI failed to print fresh lows as seen here. The above indicates a potential trend reversal going forward. The downside risk is limited from here.
EURUSD is facing immediate price resistance around 1.1200 mark and a break higher will confirm that bulls are back in control. Furthermore, a break of resistance trend line will push prices into the buy zone, which could be encouraging for bulls. Until this happens, the pair remains vulnerable for fresh shallow lows.
Trading plan:
Preparing for a potential rally against 1.0636
Good luck!
