Technical outlook:
EURUSD dropped below parity to the 0.9901 lows on Tuesday before finding interim support. The currency pair rallied by more than 110 pips to touch 1.0018 before pulling back and producing a Doji candlestick pattern on the daily chart. It is seen to be trading close to the 0.9950 mark at this point of writing and is expected to produce a rally through the 1.0364 interim resistance in the next few trading sessions.
EURUSD has been falling since January 2021 after printing 1.2350 highs. It has either completed a major downswing at a larger degree or is still carving it. Immediate price resistance on the chart above is seen through the 1.0365 mark, and a break higher will confirm that bulls are back in control. Until then, new lows are on the cards.
EURUSD is still working on its recent rally between 0.9901 and 10018 and is expected to find interim support ahead of the 0.9901 mark. The rally was corrective, and the price is expected to retrace fully before resuming a new one. A push above 1.0018 will be encouraging for bulls and will shift focus towards the 1.0364 mark.
Trading plan:
Preparing to buy against 0.9901
Good luck!
