Technical outlook:
EURUSD dropped to 1.0696 on Monday carving yet another swing low and inching closer to 1.0636 critical support carved in March 2020. If bulls manage to reverse from current levels, the trend would remain intact but a break below 1.0636 would mean further losses going forward. Prices now need to clear at least 1.0920-30 to confirm a reversal.
EURUSD is facing immediate price resistance around 1.0920-30, followed by 1.1200 levels. A break of 1.0920 resistance should be seen as the first step of a major reversal ahead. Further push through 1.1200 will confirm a trend reversal and that bulls are back in control. looking poised to stay for long.
On the flip side, a break below 1.0696 will open the door to test 1.0636 support indicating further downside for the pair. Having said that, please note that each swing low print recently has been accompanied by a bullish divergence on the daily RSI. It could be seen as a strong indicator of potential trend reversal ahead.
Trading plan:
Potential rally through 1.1200 and 1.1500 against 1.0600
Good luck!
