Technical outlook:
EURUSD has been trading within a narrow range for the last 24 hours, after pulling back higher from 1.0520. The single currency pair is seen to be trading around 1.0600 at this point in writing and is expected to remain sideways for a while before the bears are back in control. A break below 1.0520 will open the door to drop towards at least 1.0440 and 1.0350 in the near term.
EURUSD seems to have terminated its larger-degree corrective rally to a 1.0736 high over the last week of December 2022. Prices reversed from a convergence of the trend line resistance and the Fibonacci 0.382 retracement of its earlier drop between 1.2266 and 0.9535 as seen on the daily chart here. It is likely that a larger-degree downtrend has resumed against 1.0736 now.
EURUSD could proceed towards 0.9535 and lower in that case in the next several weeks. Alternatively, if prices are to resume higher above 1.0736, the instrument needs to produce a corrective drop towards 1.0350 and up to the 1.0000-50 area. Either way, a high probability remains for a drop from current levels to 1.0350 at least, before finding support.
Trading idea:
Potential bearish drop against 1.0736
Good luck!
