Technical outlook:
EURUSD dropped to the 1.0122 lows on Tuesday after hitting the 1.0210 highs intraday. The single currency pair finally produced a Doji/Indecision candlestick pattern on the daily chart, closing at around 1.0163. This could be a potential turning point as bulls prepare for a rally towards the 1.0800-1.0900 zone in the next few trading sessions.
EURUSD is still unfolding a larger-degree corrective wave towards 1.0800 at least, after printing intermediary lows at 0.9952. The currency pair could be into its last leg. If 1.0100 holds well, we might witness a rally from here. On the flip side, if prices drop below 1.0100, the next support is seen at about 1.0075.
The recent upswing could be seen between 0.9952 and 1.2075. If prices drop below 1.0075, the trading instrument is expected to produce a strong bullish bounce since it is the Fibonacci 0.618 retracement as projected on the daily chart. Only a break below 0.9952 will be a concern for bulls and delay their price action.
Trading plan:
Potential rally towards 1.0800-1.0900 against 0.9952
Good luck!
