Technical outlook:
EURUSD slipped through the 1.0510 lows intraday on Friday after turning from the 1.0630 highs overnight. The single currency pair is seen to be trading close to 1.0520 at this point in writing as the bears remain poised to drag towards the 1.0350-10440 zone. Prices are still testing the back side of the resistance-turned-support trend line and need to stay below the 1.0736 high to keep the bearish structure intact.
EURUSD's wave structure remains bearish for the near term with potential targets towards 1.0440 and 1.0350 at the most. Intraday pullback rallies can be expected through 1.0590 which is a potential resistance zone. The bears might be back in control if prices reach there with the short-term RSI indicating a bullish divergence. It is a sell-on-rallies case until 1.0350 at most.
EURUSD has either resumed its larger-degree wave structure, which is pointing lower towards 0.9535 for the next several weeks; or it is just producing a retracement and could find its next support around 1.0350 or up to the 1.0000-50 zone. Under both scenarios, prices can be expected to drop further at least another 200 pips from the current levels.
Trading scenario:
Potential bearish move against 1.0736
Good luck!
