Technical outlook:
EURUSD rallied through the 1.1076 high last week before finding resistance. The single currency pair reversed sharply thereafter and carved an intraday low around 1.0909 on Monday. It is seen to be trading close to 1.0975 at this point in writing as the bulls are producing a short pullback rally. We expect prices to reverse lower soon.
EURUSD is still unfolding a larger-degree counter-trend drop, which began from the 1.1035 highs earlier. The bears are carving a complex corrective structure and should drag prices lower towards 1.0500 to complete the pattern. Only a consistent push above the 1.1076 high will confirm that the bulls are back in control and void the bearish setup.
EURUSD should be facing intraday resistance around the 1.1000-20 zone, which is also the Fibonacci 0.618 resistance of the recent drop between 1.1076 and 1.0909 (not seen here). We expect bears to enter the market if prices are able to reach there and drag sharply lower towards the 1.0830 immediate price support.
Trading plan:
A potential bearish move against 1.1200
Good luck!
