Technical outlook:
EURUSD reversed lower from the 1.1066 high on Tuesday and dropped through the 1.0965 lows intraday, giving up all gains. The single currency managed to produce an Engulfing Bearish candlestick pattern on the daily chart indicating a potential reversal ahead. The currency pair is seen to be trading close to 1.0980 at this point in writing as the bears remain inclined to drag prices further lower.
EURUSD keeps its medium-term wave structure intact for now and projected targets remain towards 1.0500 in the next few weeks. The pair had earlier rallied between 0.9535 and 1.1035 levels carving a larger-degree upswing. Since then, it is unfolding a corrective wave lower towards 1.0250 and possibly down to 1.0100 going forward.
EURUSD is currently facing intraday resistance around 1.1000 and the bears would be inclined to come back in control if prices manage to reach there. Immediate support is seen close to the 1.0800-20 area and a break lower will confirm that the bears are back in control to drag prices further lower towards 1.0500 and 1.0250.
Trading idea:
A potential bearish move against 1.1200
Good luck!
