Technical outlook:
EURUSD dropped through the 1.0519 lows during the New York session on Tuesday before finding support. The single currency pair is seen to be trading close to 1.0610 at this point in writing and is expected to resume lower to 1.0440-50 in the near term. Prices need to stay below the 1.0700 immediate resistance to keep the bearish structure intact.
EURUSD has bounced off the backside of its resistance trend line, which has turned into support, around the 1.0500-20 area. A drop below 1.0520 will open the door to further testing of 1.0440, 1.0350, and lower levels. Alternatively, if prices break above 1.0700 from here, it would confirm further upside towards 1.0800 and higher. We are looking lower in the near term.
The larger-degree wave structure might still indicate that trend has resumed lower towards 0.9535. The three-wave corrective rally, which had begun from 0.9535, might have terminated at around 1.0735. If the above structure holds well, the bears will remain in control holding prices below the 1.0700-50 area and will continue pushing the instrument below 0.9535.
Trading idea:
Potential bearish continuation against 1.0700-50
Good luck!
