Technical outlook:
EURUSD has been drifting sideways for the last few trading sessions and trading within a range between 0.9960 and 1.0060. A clear break of the above range will determine the next big move for the currency pair. The bulls are looking ready to break above the 1.0075-80 handle and push through the 1.0365 initial resistance.
EURUSD should be looking to produce a counter-trend rally at a larger degree, after dropping from the 1.2350 highs since January 2021. The single currency pair might be looking to push through the 1.0800-1.0900 zone in the next few trading sessions. Please note that 1.0800 is also the Fibonacci 0.382 retracement of the above drop and hence it should provide enough resistance.
EURUSD has further produced a strong bullish divergence on the daily RSI as prices dropped to fresh lows at 0.9901 earlier. This could be seen as a potential trend reversal and a break above 1.0365 will confirm this suggestion. On the flip side, a break below 0.9901 would further delay matters and drag prices towards 0.9400.
Trading plan:
Potential rally towards 1.0365 against 0.9901
Good luck!
