Technical outlook:
EURUSD has rallied through 1.0700, inching closer to the recent swing high at 1.0736. The single currency pair is seen to be trading close to 1.0700 at this point in writing and might test the 1.0736-50 zone before reversing lower again. Prices need to retrace at least towards 1.0000-50 before finding support again. The instrument is looking lower from here in the near term.
EURUSD also seems to have most likely completed its larger-degree counter-trend rally, which began from the 0.9535 lows in September 2022. The three-wave rally has further stalled at its 18 months old resistance trend line and the Fibonacci 0.382 retracement of its drop between 1.2266 and 0.9535 as seen on the daily chart here.
If the above structure holds well, prices would resume lower from here and drag below 0.9535 in the next several weeks. Alternatively, if EUR has carved a meaningful bottom around 0.9535 and is following an uptrend, prices might resume higher again from the 1.0000-50 zone. Either way, we expect lower prices in the near term.
Trading idea:
A potential bearish drop against 1.0750.
Good luck!
