Technical outlook:
EUR/USD rallied through the upper boundary of its consolidation around 1.0640-50 during the Asia session on Tuesday. The single currency pair is seen to be trading close to the 1.0655 mark at this point in writing as bulls are looking poised to test the 1.0670-80 resistance zone. Prices are expected to turn lower from the 1.0680 mark, which is intraday potential resistance.
EUR/USD should ideally remain below the 1.0736 high, which was carved earlier this month. A bearish engulfing candlestick pattern was produced on the daily chart after hitting the 1.0736 mark, which still holds well. Furthermore, the currency's 18-20 month-old trend line resistance was also tested earlier, along with the Fibonacci 0.382 retracement of the drop between 1.0266 and 0.9535 respectively.
A high probability remains for the larger degree downtrend to resume from here if bears are able to hold prices below the 1.0735 interim resistance. The projected downside targets are below the 0.9535 lows, which would complete the wave structure. Alternatively, prices could find support around the 1.0000-50 range before resuming its rally.
Trading plan:
Potential bearish turn against 1.0750
Good luck!
