Technical outlook:
EURUSD rallied through 1.0640 during the New York session on Tuesday only to find resistance and reversed sharply. The single currency is seen to be trading close to 1.0590 at this point in writing as the bulls prepare to push through the 1.0700-20 mark in the near term. Prices might test the 1.0560-70 range again before resuming higher though.
EURUSD is still carving/unfolding a larger-degree corrective wave, which began from the 1.1025 highs in early February. Prices have managed to find support just ahead of the 1.0500 handle and it could be the first wave lower. If the above structure holds well, the euro could resume its second wave higher through 1.0700 and up to 1.0850 levels going further.
EURUSD is expected to face strong resistance around the 1.0800-50 range as the bears would be inclined to come back in control, dragging lower towards 1.0100 as the third wave unfolds. Also, note that 1.0100 is the Fibonacci 0.618 retracement of the earlier rally between 0.9535 and 1.1025, hence a high probability remains for a bullish bounce.
Trading idea:
Potential short-term rally towards 1.0700 and 1.0850, then lower again
Good luck!
