Technical outlook:
EURUSD has been oscillating sideways within a tight range of 1.0580 to 1.0650 over the last few trading sessions. The single currency pair is seen to be trading close to 1.0610 at this point in writing, closer to the lower border of consolidation. A breakout can be expected this week since the triangle consolidation range is around 70 pips.
EURUSD had surpassed the 1.0736 high over the last week before finding resistance. The currency pair turned lower from its 18-month resistance trend line and produced an Engulfing Bearish candlestick pattern as seen on the daily chart. A high probability remains for a turn lower towards the 1.0100-50 area at least in the next several trading sessions.
EURUSD is facing stiff resistance around the 1.0640-50 zone and might have terminated its triangle consolidation. A break below 1.0570-80 is now awaited to confirm a bearish breakout, which could accelerate a move lower towards the 1.0100-50 area. Also, note that the Fibonacci 0.618 retracement of the recent upswing between 0.9740 and 1.0736 is seen passing close to the above range. The outlook is downward in the near term.
Trading idea:
Potential bearish turn against 1.0750
Good luck!
