Technical outlook:
EURUSD dropped through the 0.9966 lows after reversing sharply from the 1.0187 highs on Tuesday. The single currency pair printed a fresh intraday low at 0.9955 on Wednesday before finding support, pushing through the 1.0020-30 zone. It is seen to be trading close to 1.0000 at this point in writing and is expected to continue sideways for a while before bulls are back in control.
EURUSD is still potentially unfolding a larger-degree corrective rally, which began from the 0.9860 lows last week. The pair is expected to push through 1.0750 and up to the 1.0800-1.0900 zone going forward. Also, note that the Fibonacci 0.382 retracement of the entire drop between 1.2350 and 0.9866 is seen passing through 1.0800, which is the potential resistance level.
EURUSD has now probably retraced its lower-degree upswing between 0.9866 and 1.0198 as bulls prepare to be back in control. Prices might trade within a tight range for a short while before resuming higher towards 1.0450 and 1.0735 respectively. The bottom line remains 0.9866, which is likely to be intact.
Trading plan:
Potential rally towards 1.0450 and 1.0750 against 0.9800
Good luck!
