Technical outlook:
EURUSD has rallied back to the 1.0970-75 range after dropping briefly through 1.0940 on Monday. The single currency pair is seen to be trading close to 1.0965 at this point in writing and could push through the 1.1000-1.1010 range intraday before reversing lower again. The bears are looking inclined to remain in control and hold prices below 1.1076 going forward.
EURUSD is working on a larger-degree upswing between 0.9535 and 1.1035 respectively. The currency pair is carving a potential expanded flat corrective wave, which is potentially targeted below 1.0500 to complete. Also, note that prices have produced an Evening Star candlestick pattern on the daily chart after the 1.1076 high, which further encourages the bearish setup.
EURUSD is currently working on a lower-degree downswing between the 1.1076 and 1.0909 levels. The Fibonacci 0.618 retracement of the above drop is seen across the 1.1000-1.1010 range (not shown here), which is intraday resistance. Watch out for a bearish reaction if prices manage to rally through the 1.1000-1.1010 area during the day or in the near term.
Trading idea:
A potential bearish move against 1.1200
Good luck!
