Technical outlook:
EURUSD carved an intraday high at 1.0926 on Monday before reversing sharply to 1.0850 during the New York session. The single currency pair has pulled back since then and is trading close to 1.0880 at this point in writing.Prices should ideally stay below the 1.0926 high and turn lower towards the 1.0770 initial support on lower timeframes. It would confirm that the bears are back in control.
EURUSD might be extremely close to resuming lower towards 0.9535 and further. The large-degree corrective rally, which began from 0.9535, looks complete and calls for a turn lower from current levels. If not a trend reversal, we can expect a meaningful correction towards 1.0370 and 1.0050 levels going forward. A break below 1.0480 adds to further confidence in the bearish move.
EURUSD faces strong resistance around the 1.0900-1.1000 zone as marked on the daily chart. The bears will remain inclined to be back in control and drag prices lower towards 1.0370 in the near term. Also, note that 1.0050 is the Fibonacci 0.618 retracement of the above rally between 0.9535 and 1.0926 levels. Hence, the probability remains high for a bullish reversal if prices drop to those levels.
Trading idea:
Potential bearish move against 1.1000
Good luck!
