Technical outlook:
EURUSD climbed above 1.0000 intraday on Tuesday. Bulls are looking poised to continue higher towards the 1.0080-90 area from here, which is initial interim resistance. We can expect prices to retrace lower thereafter before resuming higher towards the 1.0364 resistance next. Ideally, bulls need to hold prices above 0.9901 to keep the structure intact.
EURUSD has carved a meaningful bearish boundary between 1.2350 and 0.9901 since January 2021 as seen on the daily chart. The entire drop should be retraced at least towards the 1.0800-1.0900 area, which coincides the Fibonacci 0.382 level and potential resistance. A break above 1.0364 will confirm that the bulls are back in control.
EURUSD has carved a strong bullish divergence on the daily RSI because prices dropped through 0.9901 as seen on the chart presented. This could be a potential turning point for a pullback at least, if not a trend reversal. the bulls might be eyeing the 1.0364 resistance from here. The focal point remains 0.9901, which should hold well.
Trading plan:
Potential rally towards 1.0364 and 1.0800 against 0.9800
Good luck!
