Technical outlook:
EURUSD rose towards 1.0073 on Tuesday after printing a low just below 1.0000. The single currency pair oscillated within the 75-pips range producing a Doji candlestick pattern on the daily chart. The chart might be set for a bullish Morning Star pattern as bulls are looking poised to hold prices above the 1.0000 interim low carved recently.
EURUSD seems to have unfolded a meaningful larger-degree downswing between 1.2350 and 1.0000 since it started in January 2021. The trading instrument has hit the Fibonacci 0.382 extension at around 1.0021 of the above drop, as projected on the daily chart. A high probability remains for a meaningful pullback to materialize going forward.
We expect a counter-trend rally at least towards 1.0900, which is the Fibonacci 0.382 retracement of the entire drop between 1.2350 and 1.0000. Even if there is room for yet another low, prices are likely to reverse after producing a meaningful corrective rally towards the 1.0800-900 area going forward.
Going forward:
EURUSD might have formed a major bottom at around 1.0000 on Tuesday. Bulls are now looking poised to come back in control which could be confirmed by a break above immediate resistance at 1.0615. Also, note that interim resistance on the hourly chart is seen towards 1.0190 and a push higher will be the first step towards a major reversal.
Trading plan:
Potential rally towards 1.0900 against 0.9900
Good luck!
