Technical outlook:
EURUSD pushed through the 1.0113 high last week, taking out initial resistance at 1.0085-90 with ease. The currency pair should correct lower this week towards the 0.9940-50 area before proceeding higher again. It is seen to be trading close to 1.0085 at this point in writing and is expected to drag lower soon.
EURUSD is unfolding a larger-degree downswing since January 2021 after hitting resistance at 1.2350. The bears have carved a huge bearish boundary between 1.2350 and 0.9863 as seen on the daily chart. A pullback rally towards 1.0800-1.0900 remains a high probability before prices turn lower towards the 0.9400-0.9500 zone.
EURUSD has carved a lower-degree upswing between 0.9863 and 1.0113 last week. The bears will remain inclined to correct lower towards 0.9940-50 over the next few days before giving in to the bulls. We can expect another push towards 1.0400-1.0500 thereafter with potential towards 1.0800-1.0900, which is the Fibonacci 0.382 retracement of the entire drop.
Trading plan:
Potential rally towards 1.0800-1.0900 against 0.9860
Good luck!
