Technical outlook:
EURUSD rallied yet again towards 1.0750 intraday on Wednesday, inching closer to the 1.0800 handle. The single currency pair is seen to be trading around 1.0735 at this point in writing as the bulls prepare to push above 1.0750. Resistance should be strong around the 1.0800-50 zone, triggering a bearish reversal.
EURUSD is currently above the Fibonacci 0.382 retracement of the recent drop between 1.1033 and 1.0535. A push towards the 1.0800-50 area will meet the Fibonacci 0.618 retracement of the above drop. A probability remains high for the bears to come back in control thereafter and drag prices below the 1.0500 interim support.
EURUSD is producing a counter-trend wave lower towards 1.0100 at a larger degree. The first leg of decline terminated around 1.0535, while the second leg is either complete or will be completed close to 1.0800. Thereafter, we can expect Wave C lower toward 1.0100. Also, note that the Fibonacci 0.618 retracement of a larger-degree upswing is also passing through 1.0100.
Trading idea:
A potential drop towards 1.0100
Good luck!
