Technical outlook:
EURUSD rose through the 0.9873 highs intraday on Tuesday before finding some resistance. The single currency pair has pulled back since then and is seen to be trading close to 0.9820 at this point in writing. Intraday support is seen at around 0.9770 as the bulls prepare to come back in control and push the price higher towards 1.0200 at least in the near term.
EURUSD might be progressing into its last leg higher after carving a potential low at about 0.9635 last week. Immediate price support is seen at 0.9635, followed by 0.9535; while resistance comes in at 1.0200, followed by 1.0350 and higher. The bulls are looking poised to hold prices above 0.9635 to keep the structure constructive.
EURUSD has faced resistance at 0.9873, which is the Fibonacci 0.618 retracement of the drop between 0.9999 and 0.9635 levels. If the above holds well, prices might drag below 0.9635 indicating further downside. Looking at the larger wave structure, we are poised to project the rally to continue till 0.9635 is intact.
Trading idea:
Potential rally through 1.0200 and higher against 0.9500
Good luck!
