Technical outlook:
EURUSD rallied through the 1.0673 highs during the New York session on Tuesday before finding resistance. The single currency pair is seen to be trading close to 1.0630 at this point in writing as the bears remain more inclined to come back in control soon. A break below 1.0500 is now required to confirm that the bears are back in control here to stay for a while.
EURUSD has hit the Fibonacci 1.271 extension (Red) as seen on the daily chart here, potentially terminating its larger-degree corrective wave. Furthermore, it is also the Fibonacci 0.382 retracement of the earlier downswing between 1.2266 and 0.9535 respectively. A high probability remains for a bearish turn from the 1.0670-1.0750 zone ahead.
EURUSD has also hit its trend line resistance of 18 months as prices tested 1.0673. A bearish candlestick formation here will turn prices towards the larger-degree downtrend and drag below the 0.9535 mark in the next several weeks. Immediate price resistance is now seen at 1.0750 while support comes in around 1.0500.
Trading idea:
Potential bearish reversal against 1.0790
Good luck!
