Technical outlook:
EURUSD rose above the 1.0615-20 highs during the European session on Monday before finding resistance and pulling back. The single currency pair slipped through 1.0570 in the early Asian session on Tuesday as bears prepare to re-test the 1.0500 interim support before giving up. EUR/USD is seen to be trading close to 1.05805 at this point in writing and is expected to drag lower towards the 1.0475-1.0500 zone.
EURUSD is still attempting to complete the counter-trend rally, which began from the 1.0350 lows in May 2022. After terminating its first and second waves at around 1.0786 and 1.0360, the currency pair is seen to be progressing within the third wave rally. If the above structure holds well, prices will climb through 1.0950 in the next few trading sessions.
Furthermore, EURUSD seems to have carved a lower degree upswing between 1.0360 and 1.0615. Prices are now expected to retrace lower towards the 1.0460-1.0500 range before resuming the rally. Also, note that the above range is close to the Fibonacci 0.618 retracement of the above upswing.
Trading plan:
Potential rally through 1.1100 against 1.0300
Good luck!
