Technical outlook:
EURUSD dropped close to the 1.0200-05 levels intraday on Tuesday, having reached 1.0295 during the early Asian trade. The single currency pair is pushing through 1.0220 at this point in writing and is expected to print another high above 1.0294 soon. Having said that please note that strong support is seen at around 1.0075 for a bullish reversal.
EURUSD is still unfolding a corrective rally against the 0.9952 interim support. The potential remains for a push through the 1.0800-1.0900 area in the next several weeks. The currency pair is either working to find support ahead of 1.0100 or at around 1.0075 before resuming higher again. The bulls need to hold prices above the 0.9952 lows to keep the structure constructive.
EURUSD has carved a meaningful downswing between 1.2350 and 0.9952 since January 2021. Structurally, the entire downswing needs to be retraced at least towards the Fibonacci 0.382 level before the next downswing begins. Bulls are looking poised to extend the rally close to the 1.0800-1.0900 levels before giving in to the bears again.
Trading plan:
Potential rally through 1.0800-1.0900 against 0.9952
Good luck!
