Technical outlook:
EURUSD dropped to fresh swing lows at 0.9877 during the Asian session on Monday, before finding interim support. Bulls now need to clear past the 1.0085-90 initial price resistance to confirm a meaningful bottom is in place. The daily chart is unfolding a Doji candlestick pattern. If successful, it would indicate a potential trend reversal soon.
EURUSD has carved a larger-degree downswing between 1.2350 and 0.9877 as discussed in the last several trading sessions. It is just a matter of time when the bulls are back in control to produce a counter-trend rally at least towards 1.0800-1.0900. The trend line and the Fibonacci 0.382 retracement of the above drop are also converging close to 1.0800.
Furthermore, it should be noted that despite the new lows being carved at 0.9977, the RSI has already produced again a bullish divergence on four different timeframes (1H, 4H, Daily and Weekly). It is a potential indication of a trend reversal anytime soon and a break above 1.0085 will confirm it. The downside is limited from here.
Trading plan:
Potential rally towards 1.0800 against 0.9800
Good luck!
