Technical outlook:
EURUSD reversed from the 1.0975 intraday highs printed on Wednesday and dropped through 1.0890 in the last trading session. The single currency has carved an Engulfing Bearish candlestick pattern on the daily chart and is seen trading close to 1.0890 at this point in writing. A lower top might be in place at 1.0975 as the bears prepare to come back in control.
The euro bears have successfully taken out near-term support at 1.0880 but we need to see prices breaking below 1.0800 and 1.0750 to confirm and add further confidence in the bearish setup. Ideally, prices should stay below the 1.1035 swing high to keep the larger-degree corrective structure intact.
EURUSD is expected to head lower from current levels and sink below 1.0500 at least, to complete the corrective pattern. The Fibonacci projections are pointing towards 1.0350 and 1.0230 levels before terminating. The long-term resistance trend line is also passing through that zone, which is now acting as support. Watch out for the 1.0200-1.0230 bullish bounce going further.
Trading idea:
A potential bearish move against 1.1035
Good luck!
