Technical outlook:
EURUSD continues to oscillate within a tight range between 1.0500-10 and 1.0570-80 levels for a few trading sessions. The single currency pair is seen to be trading close to 1.0550 at this point in writing. The price is expected to escape from a range. A break above 1.0595 could push the price through 1.0750 before reversing while a break below 1.0500 could make the price resume lower again.
EURUSD was progressing within the last wave rally from 0.9740 lows and it might have terminated just below 1.0600. Alternatively, the bulls could push higher towards 1.0750 before giving in to the bears again. Also, note the trend line resistance passing through 1.0600-50 alongside the Fibonacci 0.382 retracement of the drop between 1.2266 and 0.9535 levels.
EURUSD could face strong resistance around the 1.0600-1.0700 area and the bears might come back strong to resume the larger-degree downtrend. If not a bearish trend reversal, prices could retrace at least through the 1.0000-50 area which is the Fibonacci 0.618 of the recent upswing from 0.9535 through 1.0595. We are looking lower in the medium term.
Trading idea:
Potential bearish reversal against 1.0700
Good luck!
