Technical outlook:
EURUSD slid through 1.0644 on Wednesday before finding interim support on Thursday. The single currency pair is seen to be trading close to 1.0695 at this point in writing and is expected to drag further through 1.0520. Bears will remain poised to hold prices below 1.0786 in the near term to keep the structure intact.
EURUSD has carved a lower degree upswing between 1.0350 and 1.0786 since May 2022. Bulls have asserted themselves by taking out initial resistance around the 1.0640-50 area. As expected, prices are now pulling back to potential support around 1.0520 before resuming the next leg higher through 1.0920-30 at least.
EURUSD is expected to find support close to the Fibonacci 0.618 retracement of the above lower degree upswing, around the 1.0500-20 area. Bulls will be poised to come back in control thereafter and push through 1.0920-30. Please note that potential remains for a push toward 1.1500 in the next several weeks before bears are back into play.
Trading plan:
Potential short-term drop to 1.0520, then higher through 1.0920-30 against 1.0300
Good luck!
