Technical outlook:
EURUSD has been drifting sideways for the past two trading sessions within 1.0400 and 1.0425-30 levels. Since the trading range is only 25 pips, a breakout can be expected within 1-2 trading sessions. The single currency pair is seen to be trading close to 1.0410 at this point in writing as the bulls prepare for a break higher towards 1.0550 in the near term.
EURUSD could be into its last sub-wave rally from the 1.0222 lows within the larger-degree corrective rally that began from the 0.9535 lows in August. The last wave is in progress from 0.9740 and is expected to terminate at the 1.0550-1.0600 area as projected on the daily chart. Immediate interim support is at 1.0222, followed by 0.9935 and 0.9740; while resistance is around the 1.0481 mark.
A push above 1.0481 will confirm and encourage a further rally towards 1.0600. Please note that 1.0600 is also passing close to the Fibonacci 0.382 retracement of a larger-degree downswing between 1.2266 and 0,9535 levels respectively. A high probability remains for a bearish turn if prices manage to reach there as the bears remain inclined to take control.
Trading idea:
Potential rally towards 1.0550-1.0600 against 1.0222. Lower thereafter.
Good luck!
