Technical outlook:
EUR/USD dropped to the 1.0985 low during the early hours of trade on Tuesday. The single currency is seen to be trading close to 1,0990 at this point in writing as bears are preparing to break below 1.0965 interim support in the immediate near term. Any intraday pullbacks should remain well capped below the 1.1095 high registered the last week.
EUR/USD has carved a larger degree upswing between 0.9535 and 1.1095 as seen on the daily chart. Whether the currency pair produces a complex corrective pattern from the 1.1035 high or corrects lower from current highs, a common output is bearish going forward. The target for the above correction is at 1.0500 and 1.0100.
EUR/USD has carved a lower degree downswing between 1.0995 and 1.0945 in the past few trading sessions. Furthermore, the pair also retracted the above downswing and is preparing to drop below 1.0945 to accelerate further. Even if an attempt is made to break above 1.0995, the upside remains limited from here as bears are poised to be in control.
Trading plan:
Potential drop against 1.1200
Good luck!
