Technical outlook:
EURUSD continues its slide as bears comfortably take out a five year support around 1.0636 mark. The single currency pair dropped further through fresh lows close to 1.0500 levels in the early Asian session on Thursday. We have witnessed a straight 400 pips drop since 1.0930 potential resistance carved over the last few trading sessions.
EURO bulls need to clear above 1.0930 resistance to confirm a meaningful bottom is in place near 1.0500 mark. On the flip side, if prices continue to slide further, it could open the door to test 1.0330 support. Please note that it is the 2017 support, which was followed by a religious rally through 1.2555 levels.
EURUSD rally could still materialize but a minimum break above 1.0930 is required to confirm a low is in place. A failure to revive from current levels would imply a continued drop below 1.0300 levels. Please also note that the daily RSI is still producing a bullish divergence with price action carving fresh lows.
Trading plan:
Potential bullish reversal against 1.0300 through 1.0930, 1.1200 and 1.1500
Good luck!
