Technical outlook:
EURUSD dropped through the 0.9708 lows last week after reversing from the 0.9808 highs. The single currency pair is seen to be trading close to the 0.9750 level at this point in writing after finding potential support just above the 0.9700. The bulls might be inclined to hold prices above 0.9640 and broadly above 0.9500 to keep the structure intact.
EURUSD has interim support around 0.9640, followed by 0.9535; while potential resistance comes in at 1.0000, followed by 1.0200 and 1.0350 levels respectively. The larger-degree counter-trend rally, which began from 0.9535, could soon resume its last leg higher towards 1.0200 and up to 1.0600. The Fibonacci 0.382 retracement of the entire drop between 1.2350 and 0,9535 is seen passing through 1.0600.
EURUSD has bounced off the 0.9635-40 area, which is the Fibonacci 0.786 retracement of its lower-degree upswing between 0.9535 and 1.0000 levels respectively. Ideally, the bulls should be back in control from the current levels and push the price through 1.0200, 1.0350, and 1.0600 taking out resistance at each level. We are looking higher until 0.9635 and 0.9535 levels remain intact.
Trading idea:
Potential rally through 1.0200 and 1.0600 against 0.9500
Good luck!
