Technical outlook:
EURUSD slipped through 1.0633 levels in the early Asian session on Wednesday, barely testing its two-year low around the 1.0636 mark. The single currency pair has found support and is seen to be trading above 1.0650 at this point in writing. Bulls shall remain poised to be back in control from here anytime soon.
EURUSD is facing immediate price resistance around the 1.0930-40 levels. A break higher is now required to confirm a meaningful bottom is carved at the 1.0633 level. The next-in-line resistance is seen around the 1.1200 mark, which needs to be taken out to confirm a bullish trend reversal. Traders are now awaiting a bullish signal on the daily chart to initiate fresh longs.
Yet again, EURO has dropped to fresh swing lows amidst strong bullish divergence on the daily RSI (not shown here). It could be a potential indication of a trend reversal from here soon. The larger degree corrective structure might be complete around the 1.0633 mark. Only a consistent break lower will further drag prices towards 1.0330 levels.
Trading plan:
Potential rally towards 1.1200 and 1.1300 against 1.0500
Good luck!
