Technical outlook:
EURUSD dropped to the 1.0340 lows during the Asian session on Monday before finding interim support. The single currency pair is seen to be trading close to 1.0355 at this point in writing as the bulls looking forward to coming back in control. A high probability still remains for a push towards 1.0550 before turning lower again.
EURUSD could be still unfolding into its last leg higher within the area of 1.0550-1.0600 before hitting resistance. Please note that 1.0600 is close to the Fibonacci 0.382 retracement of the larger-degree downswing between 1.2266 and 0.9535. The counter-trend rally, which began from the 0.9535 lows earlier, could be into its last phase before the bears are back in control.
On the flip side, if a major low is in place at 0.9535, prices would continue further above the 1.0600 mark. But before this happens, a meaningful corrective drop needs to unfold towards 1.0000. It is also the Fibonacci 0.618 retracement of the rally between 0.9740 and 1.0481 levels as marked on the daily chart here. A break below 0.9740 would nullify the bullish outlook.
Trading idea:
Potential rally through 1.0550 against 1.0200 in the near term. Then lower again.
Good luck!
