Technical outlook:
EURUSD has been drifting sideways for a few trading sessions broadly between 1.0490 and the 1.0560-70 mark. The single currency pair has yet again dropped close to its support and is seen to be bouncing from 1.0520 at this point in writing. Bulls will be poised to hold prices above 1.0470 to keep the structure intact.
EURUSD needs to break the congestion to decide on the next move. The currency has been trading lower since 1.2350 high registered on January 06, 2021. It has already carved a meaningful three-wave drop between 1.2350 and 1.0470 respectively. Ideally, prices would retrace the entire drop before resuming lower again.
EURO bulls need to clear above 1.0590 to confirm that a meaningful potential bottom is in place. Further, a push through 1.0920 initial resistance and 1.1200 resistance would add more confidence to the bullish scenario. Traders might be preparing to initiate fresh long positions from between the 1.0450 and 1.0520 range.
Trading plan:
Potential rally through 1.0920-30 and 1.1200 against 1.0300
Good luck!
