Technical outlook:
EURUSD dropped through the 1.0782 lows intraday on Thursday after reversing from the 1.0887 high earlier. If prices are carving an expanded triangle, we could witness one more high above 1.0887 before prices finally reverse. The single currency pair is seen to be trading close to 1.0790 at this point in writing as the bears prepare to come back in control.
EURUSD has either terminated at 1.0887 or is close to terminating its rally, which began from the 0.9535 lows earlier. A multi-month resistance at 1.0786 has also been taken out by the bulls as marked on the daily chart. A high probability remains for a turn lower from here with potential targets below 1.0370 and 1.0050 in the next few weeks.
EURUSD is supported at 1.07770 intraday and at 1.0481 in the near term. A drag below 1.0481 would confirm a top in place at 1.0887 and that the bears are back in control to drag further towards 1.0370. Also, note that 1.0050 is the Fibonacci 0.618 retracement of the entire rally from 0.9535 through 1.0887. The bulls are likely to come back in control thereafter.
Trading idea:
Potential bearish move against 1.0950
Good luck!
