Technical outlook:
EURUSD rallied past 1.0740 on Monday before hitting resistance and pulling back. The single currency pair slipped below 1.0700 in the early hours on Tuesday and is seen to be trading close to 1.0705 at the time of writing. If prices break above 1.0740 from here, the bulls will attempt to push through the 1.0800-50 zone before giving up.
On the flip side, a drop below 1.0650 will indicate that the bears are poised to drag towards 1.0600 at least before EURUSD could find the next support. The near-term wave structure indicates a slight corrective drop towards 1.0600 before resuming higher again. The key level to watch out for is 1.0524, which should hold for the bulls to remain in control.
EURUSD is structurally working on a larger-degree upswing between 0.9535 and 1.1030. The single currency is unfolding a corrective wave, which has the potential to terminate towards 1.0100 going forward. A high probability remains for prices to test the 1.0800 zone before the bears are back in control. Ideally, prices should stay below 1.1030.
Trading idea:
A potential drop will resume towards 1.0100 soon.
Good luck!
