Technical outlook:
EURUSD dropped to the 1.0925-30 area on Wednesday before finding support. The single currency reversed sharply thereafter and rallied through the 1.0970-80 area before pulling back. It is seen to be trading close to 1.0955 at this point in writing as the bulls are looking to push through the 1.1000-1.1010 area in the near term before the bears are back in control.
EURUSD is poised to complete a gartley structure by dropping below 1.0500 in the next few weeks. As highlighted on the daily chart, the potential remains for a drop through 1.0100 before the bulls are back in control to resume the larger-degree trend higher. Also, note that 1.0100 is the Fibonacci 0.618 retracement of the previous rally between 0.9535 and 1.1035.
EURUSD is currently working on a lower-degree downswing between 1.1075 and 1.0909 (not seen on the daily chart). Intraday resistance is seen towards the 1.1000-1.1010 zone which is also the Fibonacci retracement of the above downswing. A high probability remains for a bearish reaction if prices manage to reach there.
Trading idea:
A potential bearish move against 1.1200
Good luck!
