Technical outlook:
EURUSD rallied up to the 1.1066 high intraday on Tuesday, threatening to break above its recent swing high at 1.1076. The single currency pair found strong resistance and reversed lower to 1.1025 thereafter. It is seen to be trading close to 1.1035 at this point in writing as the bears remain poised to drag the price below 1.1000 in the near term.
EURUSD has settled below the 1.1075 high keeping the near-term bearish structure intact. The currency pair is still carving a larger-degree Up Gartley, so prices could slip below 1.0500 to complete the pattern. Potential remains for a drop towards 1.0250 and 1.0100 before the corrective wave terminates. We can expect a turn higher thereafter.
EURUSD is producing a Doji candlestick pattern on the daily chart. Thus, a close around 1.1020 will confirm the same. If completed successfully, the potential for a bearish reversal would increase significantly as the bears target the 1.1000 initial support. The near to medium-term structure continues to remain bearish till prices stay below 1.1076.
Trading idea:
A potential drop against 1.1200
Good luck!
