Technical outlook:
EURUSD has bounced off the potential support zone around 1.0500-20 and managed to reach close to 1.0590 on Tuesday. The single currency pair is attempting a push through the 1.0600 level right now as bulls prepare for a near-term target around 1.0670. A push through 1.0590-1.0600 will accelerate further through 1.0670 and 1.0780 going forward.
EURUSD had refrained from printing fresh swing lows below 1.0470 in the last two trading sessions, while the US dollar index rallied through fresh swing highs around 104.00 on Monday. The above price divergence along with the bullish divergence on the daily RSI since the last swing low printed around 1.0800-10 indicate a potential bullish reversal soon.
EURUSD needs to follow through in terms of price action. A break above 1.0920-30 initial resistance would confirm it. Bulls are looking poised to carve a three-wave corrective rally through 1.1650 in the next several weeks. A clear break above 1.1200 resistance will confirm a potential trend reversal and would encourage bulls.
Trading plan:
Potential rally through 1.0920-30 against 1.0300
Good luck!
